Trustworthy advice facilitates infrastructure financing
Equipped with profound legal knowledge and experience in infrastructure project financing, the Hong Kong partners of an international law firm contributed to the completion of a cross-border energy resources project.
Pinsent Masons – Advising Infrastructure Projects in Pakistan
Pinsent Masons, an international law firm with a presence in Hong Kong for more than 30 years, represented a mining company and a power company involved in the Thar II project in Pakistan, one of the first projects to be financed under China's Belt and Road Initiative and the first of the planned US$ 46 billion of investments under China-Pakistan economic cooperation agreements.
Completed in 2015, the Thar II project includes the US$ 700-million development of the Thar Block II coal mine, and the US$ 821-million financing of the associated 2 x 330 MW power station.
The project involved a hybrid of Chinese and Islamic financing and two financings (financing for the power station of USD$821 million and financing for the mine of USD$700 million), comprising a combination of Chinese credit from Sinosure, with additional conventional and Islamic Pakistan rupee tranches.
The mining company represented by Pinsent Masons is a joint venture between the government of Sindh, Engro Corporation, various Pakistan and Chinese strategic and financial investors, and China Machinery Engineering Corporation (CMEC); the power company is a joint venture between Engro, CMEC and a financial investor.
Pinsent Masons' lawyers served as the bridge connecting the infrastructure needs of Pakistan with the development capability of China. The lawyers have long been advising on the delivery of complex infrastructure around the world in some of the most challenging environments. The successful delivery of this project has demonstrated the unique expertise of the firm’s Hong Kong partners, who have deep understanding of international infrastructure project financing and experience of advising Chinese investors on their outbound investments. Hong Kong has long been regarded for its tradition of rule of law and advanced legal profession, and the involvement of Pinsent Masons' Hong Kong team enabled the firm to bring such values and qualities to the delivery of the project.