Gilbert + Tobin has acted for Veolia Environmental Services (Australia) Pty Ltd (Veolia) on a ground-breaking project for a new $450 million waste-to-energy facility in WA – the first of its kind in Australia. Veolia will operate and maintain the facility for a 25-year concession, which will pave the way for future Australian waste-to-energy projects.
G+T’s Banking + Infrastructure team advised Veolia on all legal aspects of the transaction, including the construction and operation and maintenance arrangements, as well as related project financing contracts with the project financier group. Without Australian precedent, the contractual structuring required in such a complex and milestone project demanded innovative flexibility and commitment from all parties and their advisers.
Banking + Infrastructure Partner Alexander Danne, who led the G+T team with support from lawyer Daniel Yim and consultant Jia Lin Ho, said he was proud to have worked alongside Veolia and its transaction partners, Acciona, Macquarie Capital and Phoenix Energy, on this successful project transaction.
“We’re delighted our significant experience in innovative and complicated project structuring has helped deliver a successful outcome for our client, Veolia. This new facility and milestone project will give the Australian market confidence in the Waste to Energy sector, and give Veolia further strategic flexibility to pursue its objectives in the dynamic Australian energy market,” Danne said.
Phoenix Energy and project co-sponsor Macquarie Capital entered into exclusive negotiations with a consortium to design, construct and operate the facility, and preliminary ground-works began in January. The consortium includes Veolia, along with Spanish infrastructure and renewable energy company Acciona. The Kwinana Waste-to-Energy Facility will start commissioning in the fourth quarter of 2020 and is expected to be fully operational in the second quarter of 2021.
G+T's Banking + Infrastructure team is ranked top tier in Chambers Asia Pacific across multiple categories and Alexander Danne is listed as a Best Lawyer for Project Finance & Projects, and Construction & Infrastructure. He has advised on many energy and infrastructure deals including, recently, the Mt Piper Power Station Water Treatment Project and Synergy’s Greenough Renewable Power Project.