DeHeng Advised China Development Bank
in Financing of Hydropower Plant San Gaban III
by China Three Gorges Corporation in Peru



The cross border transactions practice of DeHeng Law Offices in Beijing recently advised China Development Bank in advancing a credit facility to the Peruvian subsidiary of China Three Gorges Corporation to finance construction of Hydropower Plant San Gaban III in Peru. 

DeHeng acted as lead counsel for this project in association with Peruvian,  Hong Kong, English, Portuguese and Spanish local counsels for legal  aspects in respective jurisdictions. The multi-jurisdiction legal team  conducted a due diligence over the project, drafted and negotiated key  financing and project documents, and supported release of the funds.

During President Xi Jinping's visit to Peru, a memorandum for financing of  Hydropower Plant San Gaban III was signed by China Three Gorges  Corporation, Energias de Portugal S.A., China Development Bank and the  Peruvian Ministry of Energy and Mines. The project is the only  hydropower power plant among the 18 projects that form the second round  of early-stage harvest projects between China and Peru under a capacity  cooperation framework. Hydropower Plant San Gaban III is a project of  significant importance to Peru jointly invested by China Three Gorges  Corporation and Energias de Portugal S.A. Construction is expected to  greatly deepen China-Peru bilateral ties and economic cooperation, ease  electricity deficits suffered by southeast Peru, and promote regional  economic development and all-round social progress.


This project followed a commonly used structure for international project  financing. The financial documents were drafted in conformity with the  LMA (Loan Market Association) and the ISDA (International Swaps and  Derivatives Association) recommended forms. 

The DeHeng team in Beijing was led by banking and finance partner Zhang Xu  with the primary support of counsels Feng Chen and Shen Sisi. Legal  assistants Li Fan and Guo Yun provided support.

Relevant Lawyer

  • Sisi SHEN


    Tel:+86 10 5268 2888

  • Xu (Jennifer) ZHANG


    Tel:+86 10 5268 2888


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