Hogan Lovells partner says Mongolian project compares well to China deals

The leader of a multi-jurisdictional team put together to make Mongolia’s first renewable energy independent power project a reality said the speed and ease of the deal makes for a strong contrast with the frustrations often faced in similar transactions in China.

In the key industry area of renewable energy, where China is intent on making competitive inroads, Michael Aldrich, managing partner of the Hogan Lovells’ Ulaanbaatar office, led a cross-border team that advised General Electric (GE) on the financing and equity aspects of a US$122 million 50MW wind farm in Salkhit, Mongolia, 70km southeast of the capital.

“[The deal ] consisted of equity and loan agreements – with our Singapore office assisting with the financing documents, and our Hong Kong office with the equity documents, and all that being co-ordinated and put into a final form here in Mongolia, along with addressing Mongolian legal issues. In essence there was co-operation with three offices on the project,” Aldrich told China Business Law Journal.