Project Finance Law
Project Finance Law - US
- ABA - Project Finance Committee
The Project Finance Committee provides the forum for discussion of both traditional project finance, which is centered in the energy sector, and other types of projects, such as airports, ports, toll roads, LNG facilities, heavy manufacturing facilities, and sports facilities. While project finance (PF) is generally understood to apply to significant infrastructure projects, e.g., power plants, telecommunications projects and toll roads, PF techniques are routinely applied in a wide variety of transactions where parties desire to finance significant activities on a limited or non-recourse basis.
- Project Finance - Definition
Project finance is the long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. Usually, a project financing structure involves a number of equity investors, known as sponsors, as well as a syndicate of banks that provide loans to the operation. The loans are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling.
- Public Utility Regulatory Policy Act (PURPA)
The Public Utility Regulatory Policy Act (PURPA) was passed in 1978, in the midst of the energy crises that ripped through industrial world economies. Faced with predictions that the price of oil would rise to $100 a barrel, Congress acted to reduce dependence on foreign oil, to promote alternative energy sources and energy efficiency, and to diversify the electric power industry.
- Public–Private Partnerships - Definition
Public–private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP, P3 or P3. PPP involves a contract between a public-sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP, the cost of using the service is borne exclusively by the users of the service and not by the taxpayer.
- Transportation Infrastructure Finance and Innovation Act (TIFIA)
The Transportation Infrastructure Finance and Innovation Act (TIFIA) program provides Federal credit assistance in the form of direct loans, loan guarantees, and standby lines of credit to finance surface transportation projects of national and regional significance. TIFIA credit assistance provides improved access to capital markets, flexible repayment terms, and potentially more favorable interest rates than can be found in private capital markets for similar instruments.
- US Code Chapter 6 - Infrastructure Finance
In this chapter, the following definitions apply: (1) Eligible project costs.— The term “eligible project costs” means amounts substantially all of which are paid by, or for the account of, an obligor in connection with a project, including the cost of— (A) development phase activities, environmental mitigation, construction contingencies, and acquisition of equipment; (B) construction, reconstruction, rehabilitation, replacement, and acquisition of real property; and (C) capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital issuance expenses, and other carrying costs during construction.
Organizations Related to Project Finance Law
- AASHTO - Center for Excellence in Project Finance
AASHTO is a nonprofit, nonpartisan association representing highway and transportation departments in the 50 states, the District of Columbia and Puerto Rico. It represents all five transportation modes: air, highways, public transportation, rail and water. Its primary goal is to foster the development, operation and maintenance of an integrated national transportation system. AASHTO's mission is to advocate transportation policies, provide technical services, demonstrate the contributions of transportation and facilitate institutional change.
- Harvard Project Finance Portal
This portal is a reference guide for practitioners, researchers, and students seeking information about project finance, infrastructure finance, and public-private partnerships (PPP). In addition to bibliographical references for books, articles, and case studies, the site contains links to hundreds of related sites containing data as well as information about particular projects and companies/organizations involved with project finance.
- International Project Finance Association (IPFA)
The International Project Finance Association (IPFA) is the largest and the only international, independent, not-for-profit association dedicated to promoting and representing the interests of private companies and public sector organisations in Project Finance and Public Private Partnerships (PPPs) throughout the world.
- National Council for Public-Private Partnerships
The National Council for Public-Private Partnerships is a non-profit, non-partisan organization founded in 1985. The Council is a forum for the brightest ideas and innovators in the partnership arena. Its growing list of public and private sector members, with experience in a wide variety of public-private partnership arrangements, and its diverse training and public education programs represent vital core resources for partnering nationwide. The Council's members bring an unmatched dedication to providing the most productive and cost-effective public services.
- PPP in Infrastructure Resource Center for Contracts, Laws and Regulation (PPPIRC)
The PPP in Infrastructure Resource Center for Contracts, Laws and Regulation (PPPIRC.) contains sample public-private partnership (PPP) agreements and concessions, checklists, terms of reference, risk matrices, standard bidding documents develped by government agencies and sample ppp and sector legislation and regulation. It is designed for government officials, project managers and lawyers involved in PPP infrastructure projects and will help you address contractual and legal issues related to infrastructure legal reform and PPP projects.
Publications Related to Project Finance Law
- Project Finance Magazine
Market trends, deals, debt pricing, covenants, models and risk: Project Finance puts key business intelligence right where you need it - at the end of a click. Industries covered include: telecoms, power, oil, gas, rail, roads, bridges, tunnels, water, ports, airports, stadia, property and tourism development, petrochemicals, mining, private and public partnerships (PPP), PFI and utilities.
- Public Works Financing Magazine
For the most experienced help in designing innovative solutions to your infrastructure needs, please visit the Find an Expert section of this Web site, a compilation of industry leaders, all of whom advertise in Public Works Financing.
Articles on HG.org Related to Project Finance Law
- The Way for Foreign Investments Entering Pawn Industry in ChinaIn August 2012, the Ministry of Commerce of PRC (COFCOM) has issued the Regulatory Requirements on the Pawn Industry (draft) for collecting opinions from the public (“Requirements”). Such Requirements tighten the control on the regulations of Pawn Industry. However, in view of the rapid growth of such an industry in recent years, this article will discuss the chance, feasibility and way of foreign investments entering this industry and sharing its prosperity.
- Will There be an Inflow of Chinese Money in Ukraine?In recent months, China has been dominating media headlines in connection with exchange rate disputes with the Unites States and possible participation of China in the bailout of some Eurozone nations. China seems to be proving the truth behind the Chinese proverb that says that ‘the saving man becomes the free man’.
- Security Instruments in UkraineThe year of 2010 was marked by a number of loans, both foreign and domestic, raised by Ukrainian companies or their foreign affiliates or parent companies. As a rule, foreign and Ukrainian creditors provide loans to Ukrainian debtors subject to proper security of debtors’ obligations. In this article we provide a brief practical overview of the most common types of security instruments in Ukraine.
- Disclosure Obligations in Debt and Equity Offerings - UkraineWhether it’s a start-up project or a successfully running company, at some point in time every business faces a need to raise money for a variety of reasons. There are two basic ways to raise capital: either debt or equity. This article focuses on comparative analysis of primary disclosure requirements for debt and equity offerings.
- Privatizations in TurkeyThe fundamental transformation in Turkish economy has been observed during the massive privatization process since 1994. The investment opportunities in Turkey are particularly attractive in the framework of country’s ongoing attractive privatization agenda. The involvement and participation of international investors is highly encouraged by the law in course of current privatization program.
- The Crisis Aftermath: Islamic Finance and Breaking the Wall of Alternative EnergyThe global financial crisis has sparked questions about the conceptual foundations of a financial sector that has grown unwatched during the past three decades fueled by an uncontrollable thrive to accumulate profits, individualism, extreme liberalization and deregulation. Voices worldwide are calling for reforms and for the inclusion of ethical, social, collective, human and ecological dimensions in any financial and economic policy.
- Securitization of Financing for Wind Turbines in TurkeyAs demand for energy increases in Turkey, investments in this sector is boosting with the help of the government. Incentives focus on renewable energy resources for obvious efficiency and environmental considerations and specifically wind energy investments had been very popular due to vast resources of Turkish geography. Therefore the government is trying to optimize financing conditions to attract more investment in the field.
- New Measures for Fixed Asset Loans - ChinaAmid concerns that the easing of monetary policy by the Central Chinese government in early 2009 have caused monies to be channeled to speculation in shares and real estate instead of the real economy and of the increasing risk of asset bubbles and bad loans, China Banking Regulatory Commission (“CBRC”) issued the Tentative Measures for the Administration of Fixed Asset Loans (the “Measures”) on 23 July 2009.
- Islamic Finance in Real EstateAmid the economic turmoil sweeping the world, the financial services markets are evolving. Islamic finance has become the prevailing method of finance in some Eastern states where conventional finance once dominated.
- Setting up a Nongovernmental and Nonprofit Organization in RomaniaIn the following we will briefly present the characteristics of Romanian nongovernmental and nonprofit organizations.
- All Banking and Finance Law Articles
Articles written by attorneys and experts worldwide discussing legal aspects related to Banking and Finance including: asset protection, capital markets, corporate finance, financial planning, financial services law, investment law, offshore accounts, private equity, project finance, public finance, securities, trade investment and venture capital.