Book contents
- Frontmatter
- Contents
- Preface to the Third Edition
- Preface to the Second Edition
- Preface to the First Edition
- PART ONE AN INTRODUCTION TO PROJECT FINANCE
- PART TWO RISK IDENTIFICATION, ALLOCATION, AND MITIGATION
- PART THREE PROJECT FINANCE STRUCTURES
- CHAPTER FIVE PROJECT FINANCE PARTICIPANTS AND THEIR ROLES
- CHAPTER SIX PROJECT FINANCE STRUCTURES
- CHAPTER SEVEN SELECTING THE PROJECT FINANCE OWNERSHIP STRUCTURE
- PART FOUR TECHNICAL, POLITICAL, AND ECONOMIC FEASIBILITY
- PART FIVE PROJECT FINANCE DOCUMENTATION
- PART SIX CREDIT ENHANCEMENT
- PART SEVEN DEBT AND EQUITY FINANCING
- PART EIGHT COLLATERAL
- PART NINE PROJECT SPONSOR AND INVESTOR AGREEMENTS
- PART TEN SPECIAL TOPICS IN PROJECT FINANCE
- Appendix A A Checklist of Due Diligence Considerations for a Project Financing
- Appendix B UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects
- Project Finance Terms, Abbreviations, and Acronyms
- Select Bibliography
- Index
CHAPTER SEVEN - SELECTING THE PROJECT FINANCE OWNERSHIP STRUCTURE
from PART THREE - PROJECT FINANCE STRUCTURES
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- Preface to the Third Edition
- Preface to the Second Edition
- Preface to the First Edition
- PART ONE AN INTRODUCTION TO PROJECT FINANCE
- PART TWO RISK IDENTIFICATION, ALLOCATION, AND MITIGATION
- PART THREE PROJECT FINANCE STRUCTURES
- CHAPTER FIVE PROJECT FINANCE PARTICIPANTS AND THEIR ROLES
- CHAPTER SIX PROJECT FINANCE STRUCTURES
- CHAPTER SEVEN SELECTING THE PROJECT FINANCE OWNERSHIP STRUCTURE
- PART FOUR TECHNICAL, POLITICAL, AND ECONOMIC FEASIBILITY
- PART FIVE PROJECT FINANCE DOCUMENTATION
- PART SIX CREDIT ENHANCEMENT
- PART SEVEN DEBT AND EQUITY FINANCING
- PART EIGHT COLLATERAL
- PART NINE PROJECT SPONSOR AND INVESTOR AGREEMENTS
- PART TEN SPECIAL TOPICS IN PROJECT FINANCE
- Appendix A A Checklist of Due Diligence Considerations for a Project Financing
- Appendix B UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects
- Project Finance Terms, Abbreviations, and Acronyms
- Select Bibliography
- Index
Summary
GENERALLY
Selection of the form of business organization for the project company is an important step in project development. The type of entity selected affects many aspects of project development and financing, such as the drafting and negotiation of the project documentation and the regulatory permitting process.
For example, permits granted to the project sponsor and later transferred to a new project company may no longer be valid in some jurisdictions. This is because the ownership of the project has changed. Also by example, a project contract that prohibits assignment of the contract from one entity to another may preclude a later transfer to the entity that will actually operate as the project company. Thus, the project company, whatever the form, should be organized as early in the development process as possible to avoid these concerns.
Where to organize the project company is also an important consideration: under the laws of the host country or under the laws of the project sponsor's organization. In making this determination, the advantages and disadvantages of each country's laws should be examined, as well as the tax treatment of the entity.
PRE-DEVELOPMENT ACTIVITIES
Generally
Before a project sponsor begins full development of a facility, a thorough examination of its feasibility is undertaken. During this period, both technical and financial feasibility are evaluated. To make this analysis worthwhile, a fair amount of time and resources must be invested. The factors considered in a feasibility study are discussed in detail in Chapter 8.
- Type
- Chapter
- Information
- The Law and Business of International Project FinanceA Resource for Governments, Sponsors, Lawyers, and Project Participants, pp. 83 - 92Publisher: Cambridge University PressPrint publication year: 2007