Simmons & Simmons and Integrites have advised NBT, a Norwegian wind power developer and the largest foreign investor in Ukraine, on its successful negotiations for Engineering, Procurement and Construction contracts with China Electric Power Equipment and Technology Co, Ltd. for the 300 MW second stage and 450 MW third stage of the Zophia Wind Park in Ukraine (“Zophia II” and “Zophia III” respectively).
Once completed, together with the 42.5 MW first stage, the Zophia Wind Park will become the largest onshore wind farm in Europe, with a total capacity of 792.5 MW – and will generate enough electricity to power the needs of approximately 340,000 households.
Simmons also advised NBT on its Preliminary Financing Arrangement Agreement, under which NBT and CET set out their intentions for financing for Zophia II and Zophia III. According to Simmons & Simmons, "NBT plans to tap Chinese banks including Industrial Commercial Bank of China, the Export-Import Bank of China, and China Construction Bank for EUR 500 million of senior debt and arrange an additional EUR 250 million from international banks." According to Simmons & Simmons, "this promises to be a landmark Belt and Road project in respect of its combined international and Chinese financing."
With a focus on emerging markets, NBT was the first company to close a limited-recourse financing in the fledgling wind power market in China in 2010 and earlier this year NBT, together with its equity partner Total Eren, closed the first limited-recourse financing of a wind farm in Ukraine with the 245.7 MW Syvash project (as reported by CEE Legal Matters on February 11, 2019).
Simmons & Simmons' London-based team was led by Partner Alex Blomfield and included Associates Louise Mackenzie and Elizabeth Ormesher.
The Integrites team was led by Managing Partner Oleksiy Feliv and included Partner Viktoriya Fomenko, Counsel Gennadiy Roschepii, Senior Associate Dmytro Kiselyov, and Associates Olena Zhydenko and Alina Trofimova.