Hogan Lovells has advised the Ecuadorian state-owned energy company, Corporación Eléctrica del Ecuador (CELEC), in the closing of a US$570 million credit loan agreement with the Export-Import Bank of China (Chexim).

Proceeds from the loan will be used to build the 487 megawatt Paute-Sopladora Hydroelectric Project in Ecuador by China Gezhouba Group Corporation, with an approximate cost of US$670 million. This loan agreement marks the second infrastructure project in Ecuador to be financed by Chexim, following the closing of a US$1.7 billion loan in 2010 to finance the development of the Coca Codo Sinclair hydroelectric project in which Hogan Lovells also acted on behalf of the Republic of Ecuador.

“We are delighted to have assisted in closing this highly complex cross-border transaction that will help increase production of electricity through hydropower in Ecuador and further collaboration between the People’s Republic of China and Ecuador on the development of infrastructure projects,” said Miguel Zaldivar, Global Co-Head of Hogan Lovells Infrastructure, Project and Public Finance practice who led the deal team. “The strength and global reach of the highly experienced Hogan Lovells team is what allowed us to move seamlessly in partnership with our client to secure this loan agreement.”

The Hogan Lovells Infrastructure and Project Finance practice fielded two teams on the transaction. The financing team included partners Miguel Zaldivar (Miami), José Valdivia (Miami) and Keith Larson (Washington, D.C.), as well as associate Gaston Fernandez (Miami), along with partners Jun Wei and Roy Zou and senior associate Michael Zou in the Beijing office. The project team included Miami partner Jorge Diaz-Silveira who developed the terms of the engineering, procurement and construction agreement, with the support of Mark Reeves in Miami and Gonzalo Rodriguez-Matos in Caracas, Venezuela.