Project finance encompasses the legal work required for the development, equity and non-recourse debt financing, construction, operation, and maintenance of major industrial and infrastructure projects such as power plants, hydrocarbon processing and chemical plants, pipelines, transmission lines, toll roads, airports, seaports, and sports stadiums.
The legal work required for these complex projects requires a broad and detailed knowledge of numerous legal practice areas, including securities and business organizations, debt and finance, tax, real estate, energy, construction, environmental, and utility and trade regulation laws.
Lawyers working in this practice area should have extensive experience dealing with construction contractors, feedstock and fuel suppliers, power and product purchasers, operation and maintenance contractors, insurers, title companies and land owners, private equity investors, banks and investment banks, and regulatory agencies.
Given the non-recourse nature of project finance debt, lawyers working in this area should understand how the business, economic, financial, construction, operational, and legal risks are allocated among debt and equity investors, construction, supply and off-take contractors, and insurers.
In addition to the foregoing knowledge and skills, lawyers working on international project financings will have to be aware of the unique legal, tax, and political risks of operating in host countries and have the knowledge necessary to assist clients in managing those risks with appropriate governmental and business contractual arrangements, tax, insurance, and financing structures.