January 12, 2022

Milbank Advises Export-Import Bank of China on Financing of Central and Eastern Europe’s Largest Hydro IPP


Milbank LLP advised the Export-Import Bank of China (“CEXIM”) as the lender in connection with the €190 million financing for the development of the approximately 159.9 MW Dabar Hydroelectric Power Plant located in the Republic of Srpska, Bosnia and Herzegovina – Central and Eastern Europe’s largest such project to date.

The Dabar Power Plant, which is expected to generate 250 GW per year upon completion, is owned by Hidroelektrana Dabar and will be constructed by China Gezhouba Group Company Limited. It will be part of the planned Gornji Horizonti hydropower complex.

The plant is insured for 20 years by China Export & Credit Insurance Corporation (“Sinosure”) marking the longest-ever insurance coverage provided by Sinosure.

“The transaction presented a number of challenges as it required meticulous navigation of rigorous compliance requirements for the Republic of Srpska and Bosnia and Herzegovina and managing potential implications arising from the country’s proposed accession to the European Union, while also satisfying Sinosure policy requirements,” said Aled Davies, Milbank Global Project, Energy and Infrastructure Finance partner based in Tokyo.

“Our team’s proven track record of structuring creative solutions to complex, first-of-a-kind projects combined with our experience and understanding of Chinese financial institutions enabled us to bring the transaction to successful close,” said Shepard Liu, partner in Milbank’s Beijing office and member of the firm’s Global Project, Energy and Infrastructure Finance Group, “We are extremely pleased to advise CHEXIM in its efforts to cut carbon emissions and combat pollution worldwide and look forward to supporting them in the future on similar initiatives,” added Mr. Liu.

The Milbank team was led by Mr. Liu and Mr. Davies.