Project Finance Law

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 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.

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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.