Pepper Hamilton LLP advised Strabag SpA, the Chilean subsidiary of the Austrian construction firm Strabag SE, in connection with the negotiation of a nearly $2 billion amended and restated construction contract on the Alto Maipo Hydroelectric Project near Santiago, Chile. The project involves the construction of tunnels through the Andes Mountains for a total length of 73 kilometres, and the hydroelectric plant will have a total installed capacity of 531 MW. The amended and restated construction contract was signed on February 19, 2018.
Thereafter, Alto Maipo negotiated amendments to the project financing documents with a syndicate of international development banks (IADB, OPIC and IFC) and Chilean and international commercial banks, which increased the project financing to approximately USD 3 billion. Pepper Hamilton also advised Strabag in connection with certain aspects of amended project financing documents. The second restructuring of the project closed on May 9, 2018. Partner Albert Bates Jr. led Pepper Hamilton’s team and was aided by Partners Robert S. Hertzberg and Robert A. Gallagher and Associate R. Zachary Torres-Fowler.
