PRACTICE AREAS

 

Project Finance, Financial Services, Bankinq & Finance, Islamic Finance

Project Finance, Financial Services, Banking & Finance, Islamic Finance

The Law Firm of Hassan Mahassni has considerable experience in international project financings, including experience in the development, financing, construction and operation of electric power projects, oil and gas projects, petrochemical projects, mining projects, paper mills and other industrial projects. This experience covers the full panoply of project finance structures, including build-own-operate-transfer, build-own-transfer, build-lease-transfer, leveraged lease, limited partnership ownership and operation and other structures. The Law Firm of Hassan Mahassni acted as counsel to developers, project companies, lenders, operators and other participants in these projects.

The Law Firm of Hassan Mahassni is at the forefront of the development of limited-recourse project financing as a means of financing Saudi Arabia’s vast capital requirements in the industrial, utility and other infrastructure sectors over the coming years. The Law Firm of Hassan Mahassni also has an active practice advising contractors, developers, owners and lenders on all legal aspects of engineering and constructions contracts, including claims, disputes and, when necessary, litigation. Among our notable Saudi Arabian project financing and engineering and construction representations, we have acted as:

 

Agro-industrial 

• Counsel to the Saudi Arabian developer in connection with the design, procurement and construction on a turnkey basis of a US$ 135 million, 1,600-ton-per-day sugar refinery at the port of Jeddah, Saudi Arabia.

• Counsel to a Saudi Arabian dairy processing company in connection with a proposed US$ 53 million contract for the construction of a dairy processing plant in Al-Kharj, Saudi Arabia.

 

Airports

• Counsel to the operator of the King Abdulaziz International Airport in Jeddah, Saudi Arabia, in connection with the financing of the operations and maintenance of such airport by a group of Saudi Arabian banks.

Chemical and Petrochemical

• Counsel to a syndicate of regional and international lenders in connection with the US$ 305 million project financing of a US$ 650 million aromatics facility (benzene and cyclohexane) constructed at Jubail, Saudi Arabia. This project was the first true limited-recourse project financing in Saudi Arabia and the first financing to use an adl trustee and a Shariah-compatible security structure that we developed. We also acted for the lenders on the restructuring of this financing.

• Counsel to the Ministry of Petroleum of a Middle Eastern country in connection with the negotiation of international oil concession arrangements with a foreign entity.

• Counsel to a Saudi Arabian industrial development company in connection with the development of an approximately 850,000 tons-per-year MTBE project at Yanbu, Saudi Arabia.

• Counsel to the Saudi Arabian developer and to the Saudi Arabian project company in connection with the design, procurement and construction on a turnkey basis of an integrated 800 tons-per-day soda ash plant which was to be constructed at Jubail, Saudi Arabia, with a projected capital cost of about SR 1 billion (US$ 270 million). Due to market conditions the project was canceled by the project company prior to the start of construction.

• Counsel to the Canadian developer of a 100,000 tons-per-year pulp and paper project at Qus, Egypt, using sugarcane bagasse as the raw material. The project ultimately was abandoned by the developer due to differences with the state-owned sugar company over pricing of the bagasse feedstock.

Civil

• Counsel to the Saudi Arabian prime contractor for the construction of a Saudi Arabian ministry’s main headquarters building in Riyadh in connection with the preparation and negotiation of subcontracts with various European subcontractors.

• Counsel to a Scandinavian contractor in connection with a subcontract for the construction of a 500-bed hospital in Taif, Saudi Arabia, for the Saudi Arabian Ministry of Health.

• Counsel to a major Saudi Arabian banking family’s real property development company in connection with its development of a major retail/commercial project in Jeddah, including negotiation of design, consulting engineering and construction contracts for the project.

• Counsel to a new Saudi Arabian cement company in connection with the preparation of an invitation to bidders and contract for the construction of a housing complex for the client’s new cement plant to be built in Saudi Arabia’s northern province.

• Counsel to the real estate affiliate of a major Saudi trading group in connection with the client’s proposed development of a US$ 400 million hotel and apartment complex in Makkah, Saudi Arabia.

Engineering 

• Counsel to the Saudi Arabian developer of an integrated 800-tons-per-day soda ash plant to be constructed at Jubail, Saudi Arabia, in connection with the preparation and negotiation of an agreement with a major European chemical company for the process design and detailed engineering of the process plant.

• Counsel to a Saudi Arabian cement company in connection with negotiation of a consultancy agreement with a European engineering firm for supervision of construction of the client’s plant to be built at Duba on Saudi Arabia’s Red Sea coast.

• Counsel to the affiliate of a Saudi Arabian property development group in connection with subcontracts for the interior design of a new hospital extension in Jeddah, Saudi Arabia.

• Counsel to one of the largest water services companies in Saudi Arabia in connection with primary contractual documentation relating to the engineering, procurement and construction of a SR100 million desalination plant.

Industrial 

• Counsel to a U.S. lender in connection with the bridge financing of the expansion of a petrochemical facility for the production of polyester chips at Jubail, Saudi Arabia.

• Counsel to the Saudi Arabian developer in connection with the design, procurement and construction on a turnkey basis of a SR 1 billion (US$ 270 million), 3,500-ton per year cement plant at Duba on Saudi Arabia’s Red Sea coast.

• Counsel to a Saudi Arabian bank in connection with a SR 120 million (US$ 32 million) term financing facility for a Saudi Arabian borrower as part of its SR 300 million project financing of a new float glass plant to be constructed at Jubail, Saudi Arabia.

Mining 

• Counsel to a major U.K. mining company in respect of agreements with a Saudi government organization for the development, construction, operation and management of an underground gold mine and ore treatment facilities in Saudi Arabia.

• Counsel to a major Swedish mining company in connection with a technical assistance agreement with a Saudi Arabian entity for the development of an open-pit gold mine in Saudi Arabia.

Power 

• Counsel to the Saudi Consolidated Electricity Company for the Eastern Region (SCECO East), now consolidated into SEC, in connection with the US$ 500 million financing by a syndicate of regional and international banks of the US$ 1.2 billion, 2,400 megawatt expansion of the Ghazlan power plant near Jubail. This was the first international commercial lending transaction in the Saudi Arabian electricity sector. We also acted for SEC on the restructuring of this financing following the consolidation of SCECO East into SEC.

• Counsel to Saudi Consolidated Electricity Company for the Western Region (SCECO West), now consolidated into SEC, in connection with the proposed development of the first phase of a 3,850 megawatt grassroots power project at Shoaiba, Saudi Arabia, on a BOOT basis.

• Counsel to Japanese sponsors in connection with the proposed development as an IPP of a 900 megawatt extension of the PP9 power plant owned by Saudi Consolidated Electricity Company for the Central Region (SCECO Central), now consolidated into SEC.

• Counsel to a major Saudi Arabian construction company in connection with its approximately US$ 200 million financing, as the primary subcontractor, of its construction of the PP9 power plant.

• Counsel to a U.S. developer and a Saudi Arabian developer (in consortium) in connection with the consortium’s unsuccessful bid for the design, procurement, construction and operation of a proposed captive 150 – 200 megawatts power and 340 MTPH steam co-generation facility on behalf of a Saudi Arabian industrial enterprise in Jubail on a BOT basis.

• Counsel to the Abu Dhabi Water and Electricity Authority in connection with the Taweelah A2 project and its US$ 750 million financing. This was the first independent water desalination and power generation project in the world and the first project financing in the United Arab Emirates to reach financial close. Recently commissioned, the project now generates 710 megawatts and produces 50 million gallons of potable water a day. This transaction was recognized as the “1999 Power Deal of the Year” for Europe, the Middle East and Africa by Project Finance International and “1999 Water/Power Deal of the Year” for the Middle East by Project Finance.

• Counsel to an Argentinean company in connection with its agreements to supply piping and related equipment and services to the Ras Laffan gas project in Qatar.

• Counsel to a North American engineering company in connection with its engineering, procurement and construction contract with the Saudi Arabian national electricity corporation for a US$ 1.5 billion rural electrification project in the province of Qassim, Saudi Arabia.

• Saudi Arabian counsel to a Saudi Arabian power cable manufacturer in connection with a US$ 72 million turnkey contract with the Pakistan Water & Power Development Authority for the supply and erection of two parallel transmission lines for the Hub River power project in Pakistan.

• Counsel to a UK developer which is considering the establishment of several captive power generation facilities, servicing manufacturing and other industrial groups in Saudi Arabia.

Real Estate

• Counsel to a syndicate of Saudi Arabian banks in connection with the SR 400 million (US$ 107 million) non-recourse project financing of a prestigious mixed-use office, condominium, hotel and shopping mall development in Riyadh.

• Counsel to a leading Saudi Arabian bank in connection with the SR 100 million (US$ 27 million) non-recourse project financing of a mixed-use development in Jeddah comprised of an exclusive social club, sports facilities, thalasso-balneo center, hotel, shopping mall and marina.

Telecommunications 

• Counsel to a U.S. subcontractor in connection with US$ 40 million subcontracts with a major U.S. international telecommunication company for the supply, installation, maintenance and operation of satellite earth station equipment in connection with the Saudi Ministry of PTT’s telephone expansion program.

• Counsel to a German telecommunications company in connection with a US$ 65 million project with the Saudi Ministry of PTT for installation on a rush basis of 190,000 telephone lines as part of this ministry’s telephone expansion program.
• Counsel to a U.K. based specialized telecommunications equipment and service provider in connection with the supply of such equipment and services to the Saudi Telecommunications Company.

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