DLA Piper has advised Maamba Collieries Limited, the largest coal mining company in Zambia (owned as to 65%  by the  Nava Bharat Group based in Hyderabad, India, and as to 35% by ZCCM Investment Holdings an investment fund owned in part the Zambian Government) on the structuring, documenting and project financing of phase 1 (300 MW) of a 600 MW coal-fired power station with connected coal mine in Zambia.

The project is being financed by loans from the Development Bank of South Africa (DBSA) the Industrial Development Corporation of South Africa (IDC) and  by way of an Export Credit Agency (ECA) facility which is funded by ICBC, Bank of China, Standard Chartered Bank  and ABSA Bank guaranteed by Sinosure (the Chinese Export Credit Agency). The senior debt financing is  US$515 million but may rise up to USD 590 million - with a total project cost of around US$800 million.

The DLA Piper team was led by partner and Head of Energy and Infrastructure Finance Nigel Drew who was supported by legal directors Harry Brunt and Jakub Kubicki and senior associate Matthew Perkins.

Nigel Drew said: "we are delighted to have advised on a truly unique transaction.. This is the first non recourse project financing in Africa ever to be funded with a Sinosure guaranteed ECA facility in a specially adapted form."

Clifford Chance advised the lenders and Barclays Africa were the financial advisers on the financing.