Mayer Brown has won the "Deal of the Year for Project Finance" award at the International Financial Law Review (IFLR) Asia Awards 2019 for advising on the Jawa-1 project, a major 1.76GW combined-cycle gas-fired power plant in West Java, Indonesia. The award was announced on March 7.
The same project was recognized as the "Asia Pacific Power Deal of the Year" by Project Finance International (PFI) Awards 2019 in January this year.
This will be the first integrated LNG-to-Power project financing in Asia to reach financial close, and only the second in the world to use a floating storage regasification unit (FSRU); the other is Sergipe in Brazil.
Mayer Brown advised Mitsui O.S.K. Lines, Ltd. (MOL), which has signed deals for the construction of the FSRU, FSRU services, and financing for the Jawa 1 gas-fired project in Indonesia.
Nathan Dodd (Partner, Singapore), Ben Thompson (Partner, Singapore) and Sean Prior (Counsel, Singapore) led the advice on the financing and shareholder arrangements for MOL’s participation in the project, and Nick Kouvaritakis (LNG Practice Leader, Asia) led on the contractual arrangements for the FSRU aspects of the project including the services agreement and ship management agreement.
Java Satu Power, a joint venture between Pertamina (40%) and Japanese trading houses Marubeni (40%) and Sojitz (20%), is constructing the plant, while Java Satu Regas, a joint venture comprised of Pertamina, Marubeni, Sojitz, and Mitsui O.S.K. Lines, amongst others, will build and operate the off-shore FSRU to supply fuel to the power plant. Indonesia’s state-owned utility PT PLN (Persero) will buy power produced by these facilities over a 25-year period starting 2021.
The power plant, with a total investment of US$1.8 billion, will generate 1,760 megawatts (MW).