Lovells Lee & Lee has acted on Asia's first sizable merchant plant project financing since the 1997 financial crisis, and one of the largest greenfield power projects to take place in the region this year.

The Singapore joint law venture advised Keppel Energy subsidiary Keppel Merlimau Cogen on its S$525m (US$318m) limited recourse financing to build, own and operate (BOT) a 500MW gas fired cogeneration plant in Singapore.

Lovells partner James Harris led the firm's team, which included over 25 lawyers and partners across no less than eight practice groups from offices in Singapore, Hong Kong, London and Paris.

Lovells Lee & Lee advised Keppel Merlimau Cogen over a two year period, from initial structuring and energy regulatory advice, to the negotiation - by Hong Kong partner Rupert Sydenham - of an engineering, procurement and construction contract and major maintenance agreement.

The firm also drafted gas supply and end user contracts and various other land and regulated agreements with the Singapore Energy Market Company before reaching a financial close under a Credit Facility Agreement (and related security package including a number of Direct Agreements).

The four lead banks involved in the financing were HSBC, Calyon, ING and Sumitomo Mutsui Bank. Keppel Merlimau Cogen was supported by UFJ Bank as a financial adviser.

Harris said: "This is one of the bigger deals to come to the market recently. We have done a lot of work in the Singapore energy market and waste to energy market in the last three to five years, probably more than any other firm. While the overall market in Southeast Asia is not overly strong, it is improving, which is facilitated by deals like this."