Norton Rose Fulbright has acted for a consortium of PT Medco Power Indonesia and Ratchaburi Electricity Generating Holding Public Co, Ltd on the Riau 275 MW gas-fired power plant on the east coast of Sumatra.
The consortium won a competitive tender in late 2016 and signed the Power Purchase Agreement with PLN on April 7 this year. The Riau plant will supply electricity to Indonesian state utility PLN as the off-taker under a Build, Own, Operate, Transfer (BOOT) arrangement.
A key feature of this project is that gas supply and transportation is the responsibility of PLN. This required negotiation of risk-sharing arrangements acceptable to all parties, including the lenders, while the consortium takes responsibility for building and operating a 40-kilometre pipeline between the power plant and the pipeline owned by PLN’s gas transporter.
Indonesian associate office TNB & Partners* and a Singapore-based team from Norton Rose Fulbright advised the consortium on the US$350m deal.
TNB & Partners partner Benny Bernarto led the deal and commented:
“It is pleasing to advise on one of the very first Power Purchase Agreements signed in 2017. We look forward to supporting the project as it progresses through the financing phase and ultimately contributing generation to meet the increasing demand for electricity supply.”
The TNB & Partners team also included partner Nick Merritt.
*TNB & Partners works in association with Norton Rose Fulbright Australia
For further information please contact:
Alex Boxsell, Senior Brand & External Communications Manager, Norton Rose Fulbright in Australia
Tel: +61 (0)2 9330 8165 Mob: +61 (0)414 985 556
Notes for editors:
Norton Rose Fulbright is a global law firm. We provide the world’s preeminent corporations and financial institutions with a full business law service. We have more than 3500 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.
Norton Rose Fulbright will combine with Chadbourne & Parke, a leading international law firm, during the second quarter of 2017. Norton Rose Fulbright's expanded practice will have more than 1000 lawyers in the US and 4000 lawyers worldwide.
Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.
Norton Rose Fulbright Verein, a Swiss verein, helps coordinate the activities of Norton Rose Fulbright members but does not itself provide legal services to clients. Norton Rose Fulbright has offices in more than 50 cities worldwide, including London, Houston, Toronto, Sydney and Johannesburg.
For more information about Norton Rose Fulbright, see nortonrosefulbright.com/legal-notices.
Law around the world