23 02 2016

Landmark project along the China-Pakistan Economic Corridor

Linklaters has advised on one of the largest and most complex project financing deals along the China-Pakistan Economic Corridor.


Pakistan and China have signed financing agreements amounting to approximately US$1.95 billion for the development of the Thar Block II 3.8 MT/A coal mining project and associated 2x330MW coal-fired power plant to be developed in the Thar region of Pakistan. The project is expected to be commissioned in 2018. The sponsors of the mining project include the Government of Sindh, Engro Powergen Limited, Thal Limited, Hub Power Company, Habib Bank Limited and China Machinery Engineering Corporation (“CMEC”). The sponsors of the power project include Engro Powergen Limited, Habib Bank Limited, CMEC and Liberty Mills Limited.  CMEC will also serve as the construction contractor for the projects. Linklaters acted for the lender syndicate, comprising Chinese banks led by China Development Bank Corporation, Industrial and Commercial Bank of China Limited and China Construction Bank Corporation, and Pakistan banks led by Habib Bank Limited, United Bank Limited, Bank Alfalah Limited, Askari Bank Limited, Sindh Bank Limited, The Bank of Punjab, NIB Bank Limited, Habib Metropolitan Bank Limited, Faysal Bank Limited and Meezan Bank Limited. The financing package includes U.S. dollar, Pakistani rupee and Islamic Sharia-compliant tranches. Zhang Chun, president of CMEC, has noted that this is the first integrated coal mining and coal-based power project among the projects in the China-Pakistan Economic Corridor, which is expected to push forward economic development in Pakistan. The Linklaters team was led by partners Stuart Salt and Xiaohui Ji and counsel Andrew Compton. Involved fees earner: Stuart Salt - Linklaters; Xiaohui Ji - Linklaters; Andrew Compton - Linklaters;

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