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
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