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China-related project finance has certainly been picking up this past year. While experienced partners will tell you that there still isn't exactly a dearth of projects available, several factors have contributed to the growth of the sector this year.

The liquidity of Chinese banks has been a large part of the emerging project finance landscape across Asia, and Chinese banks often play a role as one of several banks investing into projects both inside and outside of China. "Chinese banks have a lot of capital," says one partner at a domestic firm, "and they're getting braver when it comes to ways to invest their money."

Interestingly, Chinese banks have done several projects this year where they have actually led in financing projects in Southeast Asia. Chinese financial entities have had a leading role in financing development, resources and infrastructure from the Philippines to Indonesia. Sectors like energy, mining and natural resources, commercial developments should all continue to show solid growth, especially since the former are still considered traditional strategic investments for the state. Thus, indisputably, banks and state-backed financial entities are a key reason for the growth of project financings in Asia.

State-owned enterprises play a strong role in China-related project finance, while international firms often have a leading role in serving as international counsel to companies looking to invest in China. One prime example of this can be seen in the new Shanghai Disneyland development, which represents a joint venture between the Walt Disney Company and the state-owned Shanghai Shengdi group. International firms played a key role in the in-country project financing, as they negotiated a role for both parties in this unprecedented deal. Shanghai Disneyland will be one of the largest ever investments into China for an entertainment development project, and the arrangement between Chinese sponsors and Walt Disney is unlike anything either side has agreed to before.

The increasing momentum in the project finance sphere should mean that international firms who have strong relationships with Chinese financial entities will be well-positioned to capitalise on this trend in the near future.

Allen & Overy's project finance practice has enjoyed a strong year as the team has been involved in numerous high-profile deals across the Asia Pacific region. The firm continues to develop its broad relationships in the project finance area, including those with banks, sponsors, project companies, multilaterals and export credit agencies, and the project finance the team has also been involved with a number of export credit facilities for mining, hydropower and infrastructure developments.

The team has advised several major energy companies in regional oil, gas and petrochemicals projects. "They're an international firm with really good relationships with large Chinese banks as well as international institutions," says one partner. "It means that a lot of companies and banks will go to them for work on major international projects." The practice has also continued to be active in the power sector, recently acting for China Export and Credit Insurance Corporation (Sinosure) on the landmark Sasan power project in India. Last year, they also acted for Sithe on GN Power Mariveles, which represented the first Chinese financed non-Chinese sponsored IPP (Independent Power Project) outside the country. Financing for the $1 billion Sasan power project was to be provided by Bank of China, The Export-Import Bank of China, China Development Bank and Standard Chartered Bank (acting as lenders) to Reliance Infra Projects (UK) (the borrower).

Allen & Overy's team also has a presence in the renewable sector, advising on active projects and corporate ventures including financing for a Wind Farm project in Gansu Province. The Gansu project is widely considered to be the first wind power project in China that is financed through offshore debt.

"Baker & McKenzie is really coming up in the tables on the strength of their project finance practice," says a partner at a rival firm. The growing strength of Baker's project finance practice is also shown by its strong deal list this year.

Chief among the firm's Chinese-related project financing works is the ongoing advising of Disney on its joint venture with the state-owned Shanghai Shendi group and the planned development of the Shanghai Disneyland theme park. The $3.6 billion project financing deal is one Shanghai's largest-ever foreign investment projects, and requires a range of innovative legal arrangements and advice on sectors like infrastructure development, land development, management and financing. Partners David Smith, Howard Wu, Edmond Chan and Barry Cheng led the advising for Disney.

Baker's project finance team is also currently advising CNOOC on a $2.6 acquisition by Bridas Corporation of BP's 60% interest in Pan American Energy. The Bridas corporation is equally owned by CNOOC and Bridas Energy Holdings. PAE owns oil and gas operations in South America and is also the second largest oil and gas producer in Argentina. Upon completion of the acquisition, PAE will become a wholly-owned subsidiary of Bridas. Partner Bee Chun Boo is leading the deal.

In January 2011, Barry Cheng also advised the Bank of China Head Office in a €900 million ($1.3 billion) financing for a chemical project financing which forms part of the arrangements for the Chinese sponsor in completing a management buyout with respect to all the remaining shares the vendor owns in the parent company. The chemical project company owns and runs chemical manufacturing plants in Eastern Europe, and the facility is guaranteed by the Chinese sponsor and secured the Eastern Europe assets.

The past year has been marked by Shearman & Sterling's growing representation of Chinese financial institutions on their outbound investments into overseas projects. The team has represented China Exim, Sinosure, China Development Bank and Bank of China in mining sector investments in Australia, the USA, Oman and Brazil, and foresees only future growth in this sector.

Shanghai-based partner Andrew Ruff is managing partner of the Shanghai office and heads the firm's project development and finance practice in Greater China. Ruff advised Sinosure, China Development Bank and Bank of China on the financing of the Salalah IWPP (independent water and power production) natural gas and fuel-oil fired generating plant in Oman. The transaction will represent the first time Chinese banks are providing a larger share of financing compared to the local currency and international banks dollar tranches, and represents Chinese financial institutions' growing interest in the Middle East.

The Shearman team also represented Dow Chemical Company in its $15 billion coal-to-chemicals project in Shaanxi province (co-owned by Shenhua Group), and also advised on the structuring of several other joint ventures with Dow and Shenhua affiliates. When the Shaanxi project is completed it will represent the largest ever foreign direct investment project China.

Herbert Smith continues to have a leading presence in China-related project financing. This past year has seen the firm representing a major Chinese financial institution in a Southeast Asia project financing.

Partners Anna Howell and Hilary Lau also advised Kangean Energy Indonesia (KEI) on its ten year charter, $875 million contract with BW Offshore for a floating production unit (FPU) set to operate on the Terang Sirasun Batur gas fields in Indonesia. The first gas is planned to be extracted in 2012, and the FPI will be used to process gas for the Indonesian market via the East Java Gas Pipeline. BW Offshore is one of the world's leading FSPO contractors, and KEI is a market leading oil and gas producer in East Java.

"Herbert Smith is a heavyweight when it comes to project financing," says a peer. "They're known for their ability to do energy project and their history and knowledge in that sector."

The project finance practice at Linklaters is especially strong in infrastructure and the firm has earned many leading infrastructure mandates due to its experience and understanding of what it takes to put infrastructure projects together. The firm has seen an especially strong trend for Chinese contractors and suppliers to attract project support from major (and majorly liquid) Chinese banks, which is a natural fit for Linklaters given the firm's leading finance prowess. This has lead to the projects team garnering many big-ticket deals this year, especially involving project financing from Chinese banks. The team was also bolstered by the relocation of senior project finance, energy and infrastructure lawyer James Douglass to Beijing. "The practice is going to be interesting to watch with the relocation of Douglass," says a partner at a rival firm. "His move probably represents the way they are positioning themselves more and more in the mainland market."

Among the most major deals of this past year was the novel Baha Mar project financing, which represented the first time that a limited recourse financing was wholly provided by Chinese lenders.

Linklaters also had several headline mandates from China Development Bank (CBD), including CBD and Standard Chartered Bank's $1 billion facility agreement for Angolan state oil company Sonagol Finance. The company is a customary borrower on the international loan markets, and Linklaters partnership with them helped to solidify the firm position as preferred counsel for arrangers and lenders in these financings.

A key financing on the energy side was the China Development Bank, China Eximbank, Standard Chartered Bank, HSBC and BMTU lending to Jhajjar Power, a project company incorporated in India but wholly owned by CLP with respect to its 1320MW India power project. The project is one of India's huge Greenfield projects, and only the second with international bank support that has closed in nearly a decade.

Norton Rose's project finance team has been active in both inbound and outbound energy and resource projects financing. "They're a strong practice," says one client. "We use them for natural resources structured finance projects and cross border finance transactions. They're adaptive."

Outbound highlights from this past year include advising China Development Bank on financing for several renewable resources projects, including its first outbound financing of renewable solar projects in Italy and its first renewable project non-recourse financing.

In terms of inbound work, the team has seen a growing trend in investors seeking to invest in clean energy projects and energy infrastructure in China. The team has worked on three out of five key renewable projects in the market, and advised on an offshore acquisition of waste water treatment plants in China. The firm's Shanghai office has been bolstered by the arrival of counsel Fei Kwok, who has experience in advising on complex financing and project development transactions in the oil and gas, LNG (Liquefied Natural Gas) and petrochemical sectors.

In April 2011, Shanghai partner Lynn Yang and Hong Kong partner Andrew Abernethy advised Chongqing Jiangbeizui CBC Real Estate Company (J-CBC) on a proposed acquisition by New York-based Silverstein Properties. J-CBC is a project company established by China Bridge Capital and Chongqing Jianbeizui Development company. The team also advised J-CBC in relation to the acquisition of tranches of debt and equity financing by a group of onshore and overseas investors through parallel fund structures, in order to develop the Chongqing International Financial Centre project.

In addition partners Wang Yi and Chris Redden represented China Development Bank and Export and Import Bank of China on a $500 million loan facility for the financing of the Spinifex Ridge Molybdenum/Copper mine in Western Australia. The mine is being developed by Moly Mines, an Australian Company that is 51% owned by Sichuan Hanlong Group. Nigel ward also led a team representing China Development Bank, this time in advising them on a $75 million Sinosure-backed financing of a VLCC new building of Cardiff Marine, which was signed in Athens during the Greek-China summit.

Freshfields Bruckhaus Deringer team has acted for governments, developers, multilaterals, export credit agencies and other lenders on substantial projects across Asia. The team has special experience in structuring deals to support limited recourse debt, as well as negotiating financing terms for new debts. The practice covers a broad range of sectors and the team has a particular foothold in the developing project sector in Vietnam.

Recently the team advised AES as developer in relation to EPC contracts for the $1.5bn Mong Duong 2 coal-fired power project in Quang Ninh province, Vietnam. Freshfields has also continued to provide ongoing advice to intercreditor agent Crédit Agricole on the Phu My 3 power project in the country.

Latham & Watkins' project finance team is based across the Hong Kong, Singapore and Tokyo offices and is focused on the oil & gas, mining, and infrastructure sectors.

One of the largest deals the Hong Kong team worked on this year was in representing the lenders on the Hongsa Mine-Mouth Power project in Xayaboury, Lao PDR. The project involved financing for the development of power and mining facilities, including construction of a 1.878MW power plant with three lignite-fired power generation units which are scheduled to be completed in June 2015. This financing was groundbreaking in that it was the largest project loan ever raised exclusively by Thai banks, and also one of the largest ever power projects undertaken in Southeast Asia. Veteran partner Joe Bevash and Stephen McWilliams led the Latham team on the multi-jurisdictional project, which also involved a power plant and coalmine that were owned by separate project companies but financed together.

"Latham's practice is really well known among top firms for their regional project financing work," says one peer.

Recently the team at Orrick Herrington & Sutcliffe advised Thang Long Thermoelectric (Thang Long) as investor and sole developer of an Engineering, Procurement and Construction (EPC) contract. The contract with Wuhan Kaidi Electric Power was worth $645 million. This was the first coal-fired thermal power project that has been undertaken by a privately owned Vietnamese power generation company and a Chinese contractor.

Skadden Arps Slate Meagher & Flom's Asia project finance practice operates jointly out of its Hong Kong and Singapore offices and has an asset in leading energy and project finance lawyer Alan Schiffman. Clients praise his skill and technical ability, noting that his work is "superior and all that we could have asked for." Schiffman is presently involved in advising China Huaneng, the second-largest power generation company in the world, on its acquisition of a 50% in InterGen. This past year, the project finance team advised an international consortium on the preparation of its bid for the up to 2000-MW Central Java IPP (Independent Power Producer) project in Indonesia with an estimated project cost of $4 billion. They also served as counsel to a major international IPP company on the preparation of its bid for a mine-mouth project in excess of 500MW located in Indonesia, and advised a major international company in assessing the acquisition of a majority interest in an IPP project in excess of 200MW under development in Indonesia.