Allen & Overy has advised Laos’ Phonesack Group and Thailand’s Electricity Generating Public Company Limited (EGCO) as sponsors of the $1 billion Nam Theun 1 hydroelectric power project, with Clifford Chance and Thai law firm Chandler MHM (CMHM) advising the lenders. DFDL advised the sponsors as Laos counsel.
The 670-MW Nam Theun 1 hydroelectric plant will be located on the Nam Kading River, about 33 km upstream from its confluence with the Mekong River in Laos’ Borikhamxai province. The lenders included Bangkok Bank, Export-Import Bank of Thailand, Siam Commercial Bank and TISCO Bank. Partner Fergus Evans led the transaction for Clifford Chance, while the CMHM team was led by partner Joseph Tisuthiwongse.
CMHM previously represented the lenders on the development of the Nam Theun 2 hydroelectric power project in Laos, which commenced operation in 2010. The Nam Theun 1 project has entered into power purchase agreements with the Electricity Generating Authority of Thailand and Electricité Du Laos to supply 514.3 MW of power to EGAT, and 130 MW to EDL for 27 years, starting from 2022.