Power
Experience
To view details of our experience, click on any of the headings below.
Power projects, including acquisitions and disposals
Project finance
Reform and restructure
Power projects, including acquisitions and disposals
We have advised:
We advised:
Reform and restructure
We have advised:
To view details of our experience, click on any of the headings below.
Power projects, including acquisitions and disposals
Project finance
Reform and restructure
Power projects, including acquisitions and disposals
We have advised:
- Great Energy Alliance Corporation (AGL, Tokyo Electric, a leading Australian bank and institutional investors) in relation to the $3.5 billion acquisition of Loy Yang A – a 2000MW power station and associated coal mine in Victoria. We also advised on aspects of strategy in dealing with competition law issues relating to the acquisition, including issues relating to obtaining declarations from the Federal Court that the transaction did not substantially lessen competition.
- Babcock & Brown Investor Services in relation to its 50 per cent acquisition of the 960MW Victorian 'Ecogen' electricity generation assets from AES Transpower. Babcock & Brown's consortium partner in the venture is Prime Infrastructure.
- National Grid International Ltd on the construction and operation of a 600 MW undersea high-voltage direct current transmission cable. This $800 million Basslink project involves the construction of a 300 km high-voltage undersea transmission line between Tasmania and Victoria. Basslink will link Tasmania to the national electricity market in mainland Australia and will be the longest submarine power cable in the world to date. We helped devise the contractual framework having regard to market and regulatory considerations, as well as handling financing and the negotiation of a challenging environmental process.
- GE in relation to its new power station to be installed at the Telfer gold mine for Newcrest's mine expansion. This arrangement had some unique aspects with respect to supply and construction.
- InterGen on all aspects of the development and financing of the 840 MW coal-fired power station located at Millmerran, Queensland, with associated coal mine, transmission line interconnection and water supply works. This included advice on property development, infrastructure, project financing, native title, permitting and licensing, and general commercial and environmental issues. This project (valued at $1.462 billion) was voted the world's largest project-financed merchant power plant, winning the 1999 Project Finance International Asia Pacific Power Deal of the Year.
- InterGen on the development, construction and financing of the Island Power project, Singapore's first independent, foreign-owned power station.
- The State of Victoria in relation to the $25 billion sale of electricity and gas assets to various purchasers.
- Pacific Hydro Limited in the US$75 million acquisition of the Chilean State owned CODELCO's Coya and Pangal Hydro Power Projects in Chile.
- NRG Asia-Pacific Ltd in its $465 million purchase of the assets and liabilities of Flinders Power Station, including project financing and all associated project documents.
- NRG, in its purchase of its interest in the 355 MW (net) Kondapalli Power Project located in Andhra Pradesh, India. Freehills' role included assisting NRG on all aspects of the purchase of its interest in the project company and its 100 per cent interest in the operator of the project, together with ongoing aspects of the project.
- Mirant Asia-Pacific Ltd with respect to its bid for ownership of an interest in LG Energy and LG Power, IPPs based in South Korea. Our role was that of international counsel and included undertaking legal due diligence, reviewing and negotiating the acquisition agreements and shareholder agreements, advising on the financing and coordinating with local counsel on all Korean law aspects including corporate law, structuring law, government approvals and directors duties/liabilities.
- NRG in its bid for the generation assets of Samsung General Chemicals which included advice on the legal due diligence, financing, review of acquisition agreements and onshore and offshore structuring.
- Daesung and Osaka Gas in their bid for ownership of the Anyang and Buchon co-generating facilities in South Korea.
- We are retained as international counsel by the Tata Power Company Ltd of India with respect to its bid for ownership of an equity position in Dabhol Power Company, owner of the Dabhol power project in the Indian state of Maharashtra.
We advised:
- Macquarie Bank, Alinta Ltd's financier, in regards to Alinta's $1.7 billion acquisition of Duke Energy's Australian assets.
- ANZ Banking Group and other lenders in the project financing of Tarong North Power Station.
- The financier on the $100 million syndicated facility for the greenfield power station and gas pipeline in Esperance, Western Australia.
- The lenders to the Pelican Point Power State in South Australia, in particular in relation to the Gas Supply and Gas Transportation arrangements.
- The lender in the refinancing of a number of existing power projects owned and operated by Energy Developments Ltd.
- The European and Australian lead arrangers of a $2.2 billion non-recourse bond issue to finance the acquisition by Hong Kong Electric and Cheung Kong International of the privatised South Australian distribution and retail businesses, which involved drafting and negotiating the finance documents.
- The lead arrangers of a $1.326 billion syndicated acquisition facility for the acquisition of the gas retail, distribution and asset companies, Multinet Gas and IKON Energy Pty Ltd. The sale was valued at $1.97 billion. We also acted for Deutsche Bank and the National Australia Bank in connection with the refinancing of a tranche of the original facility.
- Advising Bank of Scotland and Credit Agricole on the proposed project financing for International Power's Canunda Windfarm in South Australia.
- The financial guarantor of the credit-wrapped bond issue to finance the purchase of the South Australian electricity transmission company, ElectraNet, by a consortium comprising Macquarie Bank, Powerlink and the Asian Development Bank.
- We acted for the joint lead arrangers (UBS Australia Ltd, Citibank NA, Commonwealth Bank of Australia and Societe General Australia Ltd) in the debt financing of the acquisition of Hazelwood Power Station. This $1.325 billion project financing was based on complex cross-border ownership and financing structures, with partnership and limited partnership as key project vehicles.
- The lead arrangers of a $1.130 billion senior secured limited-recourse facility for Yallourn Energy.
Reform and restructure
We have advised:
- Murraylink Transmission Company (MTC) in relation to its application for conversion of the Murraylink interconnector to regulated status under the national electricity code. Murraylink was constructed as an entrepreneurial investment and MTC sought to bring it within the regulated framework. We advised on legal and procedural issues relating to the application to the ACCC and in dealing with allegations of material errors in the ACCC's final determination.
- Western Power Corporation on the proposed legislation to split Western Power into four corporatised government business enterprises. This legislation will be the basis for the future electricity industry in Western Australia. We are also advising the Crown Solicitor's Office in relation to aspects of the proposed energy market in Western Australia, including policy matters associated with aspects of the proposed market rules.
- The Victorian Government with the restructure and privatisation of Victoria's electricity and gas supply industries.
- The Tasmanian Government in relation to disaggregating the Hydro-Electric Corporation and establishing a regulatory framework for the Tasmanian electricity industry.
- The New South Wales Government in relation to the further restructure of its electricity supply industry. Recent work includes establishing Eraring Energy as a new generation corporation and the transfer of assets ($1.5 billion) to that corporation, and the establishment of Country Energy.
- The Queensland Government on the disaggregation of the vertically integrated State utility into separate retail, distribution and generation companies and a high voltage transmission and owner (including a ring-fenced market and system operator, the Queensland System Operator).
- The Korean Government and its state-controlled electricity utility KEPCO on the electricity industry reform program. The South Korean electricity industry measures about 40,000 MW. The Korean reforms involved breaking up KEPCO's generating division into six competing generating companies, retail/distribution companies and transmission companies, and introducing a new wholesale electricity market and regulatory framework ahead of a proposed industry privatisation.
- KEPCO and the Korean Government on the optimum method of eliminating pool price volatility in the proposed price-based electricity pool to be adopted in Korea's electricity industry.
- The Public Utilities Board on the proposed restructure of Singapore's electricity industry, including the development of an electricity wholesale market. We reviewed the Public Utilities Act; drafted new legislation for the restructured electricity industry; reviewed and drafted public licences and codes of practice for the supply and transmission of electricity, and a regulator's manual.
- PricewaterhouseCoopers, lead consultant to the Asian Development Bank, with respect to the privatisation of Karachi Electricity Supply Corporation. This work involves reviewing a comprehensive options report and providing regulatory and other legal advice.
- Freehills were appointed as part of the Philippine-Australia Governance Facility (AusAID) to assist the Philippines Government in the development of an electricity wholesale market. In January 2002 this landmark project saw the market rules completed and delivered in Manila.