CITIC Construction Co.’s Investment In 750 MW Missan Combined Cycle Power Plant

Milbank LLP advised the Chinese engineering procurement and construction firm CITIC Construction Co., Ltd. (“CITIC”) as credit provider and EPC contractor in connection with a deferred payment agreement (the “DPA”) for the construction and development of the 750 MW Missan Combined Cycle Power Plant in the Maisan Governorate in the Republic of Iraq valued at over US$2 billion.

Pursuant to the DPA, CITIC will assign receivables under the EPC contract in connection with the construction of the power plant to certain funding banks which will then make funds available for CITIC to discharge its obligations under the DPA as the credit provider. The funding banks in this deal include the Industrial and Commercial Bank of China, the Export-Import Bank of China and China Minsheng Banking Corporation, Ltd.

The Milbank Global Project, Energy and Infrastructure Finance team was led by partner Shepard Liu (Picture) in Beijing and partner Aled Davies in Tokyo, with associates Aaron Mundy in Tokyo, Jenny Zhang in Singapore, and legal assistants Emma Pan in Beijing and Marcia Song in Beijing.

Involved fees earner: Aled Davies – Milbank; Shepard Liu – Milbank; Aaron Mundy – Milbank; Jenny Zhang – Milbank;

Law Firms: Milbank;

Clients: CITIC Construction Co., Ltd.;

Author: Michael Patrini