In what is the largest nuclear power deal in the world to-date, a consortium led by the Korean Power Corporation (KEPCO) has been successful in its bid to provide four units of 1400MW nuclear reactors, power plant operation services, maintenance services, nuclear fuel supply as well as training and education to the Emirates Nuclear Energy Corporation (ENEC) and related UAE entities.

 

"This transaction represents the first overseas nuclear power project for Korea,” said Jongkwan Peck, a partner at Korean firm Lee & Ko, who were retained as Korean counsel to the KEPCO-led consortium.

"Given the growing importance of environmental issues, nuclear energy is expected to become a major avenue for power production in the future, and KEPCO is poised to be a powerhouse in the industry with this landmark deal.”

 

It is understood that the law firms involved began assisting their respective clients in March 2009 during the hotly-contested bidding process. KEPCO overcame bids from France, the United States and Japan. “[We] began participating in the bidding process for this project in March 2009 by assisting the KEPCO Consortium in the discussions with ENEC on the legal and commercial aspects of the project, helping KEPCO move on to the second round of the bidding process by eliminating traditional industry powerhouses such as Westinghouse and Mitsubishi,” said Peck. “In the ensuing contract negotiations with ENEC, conducted in parallel with ENEC's negotiations with other finalists GE-Hitachi and Areva, we worked with KEPCO's Overseas Nuclear Power Projects Division in advising on all aspects of the transaction, participating in all negotiation sessions in Abu Dhabi and Seoul and internal meetings at KEPCO's underground "War Room", he said.   

 

Both law firms have both extensive experience in nuclear power generation and developed relationships with their respective clients. Lee & Ko can trace its relationship with KEPCO back as far as its early nuclear projects of the 1970’s. More recently, the firm represented the government-owned corporation in its negotiations with the Korean Peninsula Energy Development Organisation (KEDO) in respect of the 'Turnkey Contract’ for the supply of the light water reactor project to North Korea.

 

Pillsbury too, has worked on a number of nuclear and related energy deals, although the majority of these have been on behalf of US and European clients seeking to tap the Middle East market. ALB understands that the firm’s relationship with the Abu Dhabi government entity took off after its work for US energy company Thorium Power. Thorium was engaged by the ENEC in 2007 to prepare a ‘roadmap’ for the procurement and construction of nuclear power plants in the UAE.