JunHe’s attorneys have been leaders in the power and energy sectors in China for over two decades. With a combined-service model of “onshore/offshore”, “dispute/non-dispute” and “investment-construction- operation”, JunHe is a “one-stop shop” for leading legal services. We have experience in various power generating fields including nuclear, thermal, hydro, wind, photovoltaic, biomass and waste-to-energy projects, making JunHe a legal trail blazer and leader in the provision of legal services to the power industry.
JunHe’s “Full Chain” service categories in the fields of power and energy
Due diligence investigation on offshore projects; preparation of lists for legal and environmental due diligence for offshore project contracting (for offshore projects, these services normally require collaboration with foreign lawyers, as well as the integration of resources from the Ministry of Commerce of the PRC, the World Bank, the State Council of the USA and Chinese-funded companies in the project’s location, as well as comprehensive consideration of the legal requirements and resources of the target country, liaison among different parties, and value-added services).
PPP project development including drafting and reviewing legal documents for PPP projects, and negotiation for all stages of the project; arrangement and organization of legal experts of the target country and the applicable laws; resolution of disputes involved in the investment; and themed training dedicated to the client’s decision-making personnel.
Project financing including the determination of the financing structure and key financing terms, taking business modes into consideration; reviewing and legal due diligence investigation for financing projects; drafting, reviewing, revising, and negotiating the financing documents (including loan agreements, guarantee documentation, etc.); facilitating the satisfaction and confirmation of the conditions for financing lose and draw-down, and issuing legal opinion in this regard; and facilitating the satisfaction of the subsequent conditions.
EPC including legal due diligence, risk analysis on agency and consortium agreements, risk assessment and countermeasures for risks in international project contracts, and drafting and negotiation of international project contracts; claim management of all stages during the implementation of the project, risk control of material subcontracting/procurement contracts, insurance settlement for projects, risk control and payment suspension under guarantees of projects, operation and maintenance of projects; various dispute resolution processes, including negotiation for settlement, international arbitration, cross-border litigation, and ADRs such as resolution by DAB and mediation.
Credit insurance including the provision of coverage, settlement of claims and recourse; financing supported by insurance issued by China Export & Credit Insurance Corporation; resolution of disputes arising out of loss determination and claim settlement of material losses under overseas investment insurance.
Compliance management including assisting Chinese-funded companies in handling multilateral compliance issues; integration of international compliance law experts; and the establishment of compliance systems.
Acquisition of projects including the execution of term sheets, confidentiality agreements, and retainers for consultant agencies; legal due diligence investigations; negotiation and execution of SPA and other transaction documents; approval/record filing by the Chinese government for offshore investments, review and antitrust clearance by foreign governments; and satisfaction of other condition precedents and closing.
Sharing best practices including producing project risk management brochures, themed training and seminars.
Recent Representative Cases
Qinshan heavy-water reactor nuclear power plant, Phase III
JunHe provided legal services to the China Nuclear Industry Corporation (former Qinshan Nuclear Power Plant and Qinshan Nuclear Power Plant No.3 Co., Ltd) in respect to the construction in conjunction with Atomic Energy of Canada Ltd. of the CANDU (heavy-water reactor) nuclear power plant in Qinshan, China with an installed capacity of 2×700MW. Legal services included the drafting, reviewing, revising, negotiating, executing, performance and dispute resolution of the general contracting contract (the major commercial contract), the fuel procurement contract, and the technical service contract.
Limited recourse project financing of the Orient Group by the China Development Bank for the Pakistani Wind Power Project
JunHe represented the Sichuan Branch of the China Development Bank in its provision of limited recourse project financing for the Orient Group’s investment, construction and operation of the Pakistani 99MW Wind Power, a large private enterprise group in China. JunHe conducted due diligence, drafted, reviewed and negotiated the financing documents, issued legal opinions and assisted with the financing settlement. This was one of the first batch of projects under the strategy of "One Belt One Road" and the China – Pakistan Economic Corridor initiative implemented by China. In April 2015, Chinese President Xi Jinping and then Pakistani Prime Minister Nawaz Sharif witnessed the execution of the loan agreement for this project.
BOT power plant in Meulaboh, Indonesia
Since March 2018, JunHe has provided legal consultation services to China Datang Overseas Investment Co., Ltd, the owner of a 2×225MW coal-fired power plant project constructed and invested by way of BOT, including the drafting and negotiation of EPC contracts and other legal documents.
Jaguar Energy’s Power generation from solid fuels project in Guatemala
Since December 2013, JunHe has provided legal services to AEI’s Jaguar Energy in Guatemala, the owner of a 2×150MW power generation from solid fuels project. JunHe assisted the client in the settlement and cross-border dispute resolution under DPSA and EPC contracts, and provided legal services in international arbitration by ICC, and the recognition and enforcement of ICC arbitral awards in China.
A series of coal-fired power plants in the Philippines
Since 2017, JunHe has provided legal services to a member of the China Energy Construction Group for a series of coal-fired power plants constructed by way of EPC general contracting in the Philippines. This included the analysis of strategies in claims and dispute resolution, negotiation for dispute resolution with the foreign supplier of the main equipment, negotiation for dispute resolution with the local main subcontractor, and negotiation for settlement with the owner.
The first Sino-foreign offshore wind farm in mainland China
JunHe advised a global 500 energy company on its participation in an offshore farmland project located in mainland China. Services rendered by JunHe included the establishment of the project structure, due diligence, drafting the transaction documents, assistance in closing and merger control clearance. The transaction documents were executed under the witness of the heads of both countries.