Shearman & Sterling has represented the sponsor, Korea Electric Power Corporation (KEPCO), in relation to the project financing for the construction, operation and maintenance of a 2x100 MW coal-fired power project in the city of Naga in Cebu province, Philippines.

The US$270 million financing is being provided by the Asian Development Bank, K-EXIM and commercial lenders SMBC, Credit Agricole CIB and ING Bank, with K-EXIM providing comprehensive political and commercial risk cover.

Construction began in December 2007, with the first 100MW unit of the plant expected to become available by February 2011 and the second by May 2011. Given the move towards merchant power in the Philippines, this transaction is likely to set a precedent for new greenfield power projects in the Philippines in years to come.

Shanghai Project Development & Finance partner Andrew Ruff led the Shearman & Sterling team, working with partner Sanja (Sonny) Udovicic (Singapore-Project Development & Finance), counsel Nick Wang (Hong Kong-Project Development & Finance) and associates Anna Chung (Shanghai-Project Development & Finance), Joseph Tong (Hong Kong-Project Development & Finance), Crystal Chen (Shanghai-Project Development & Finance), Jenny Chao (Shanghai-Project Development & Finance) and Anna Fingerit (Singapore-Project Development & Finance).