Thursday, July 28, 2016

#TBT: Power Privatizations in Africa: Key Lessons


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was first published in the Project Finance NewsWire in November 2014 and written by Kevin Atkins and Ikenna Emehelu, partners in Chadbourne's Project Finance Group.



Power Privatizations in Africa: Key Lessons

Privatizations in sub-Saharan Africa offer key lessons for investors seeking to enter newly-deregulated power markets in Africa.

Monday, July 25, 2016

First Shipment of US LNG Passes Through Expanded Panama Canal

By Deanne Barrow, in Washington

Today marked the first voyage by an LNG tanker through the newly expanded Panama Canal. The expansion project began in 2007 and created a new high-capacity lane connecting the Atlantic Ocean to the Pacific Ocean. Construction finished in late June. The Panama Canal can now accommodate ships that are one and a half times larger.

The inaugural trip was made by a tanker transporting LNG from Cheniere’s Sabine Pass liquefaction plant in Louisiana. Five months ago, that facility made the first export of US shale gas to overseas markets.

Thursday, July 21, 2016

#TBT: How the Global Credit Crisis is Affecting Project Finance in the Gulf Arab States


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was first published in the Project Finance NewsWire in January 2009 and written by Richard Keenan, a partner in Chadbourne's Project Finance Group.



How the Global Credit Crisis is Affecting Project Finance in the Gulf Arab States


How different the project finance landscape looks now in the six Arab states that make up the Gulf Cooperation Council — Kuwait, Qatar, Bahrain, Oman, the United Arab Emirates and Saudi Arabia.

Thursday, July 14, 2016

#TBT: Negotiating With Chinese Lenders


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was first published in the Project Finance Newswire in November 2011 and written by Magnus Rodrigues, a partner in Chadbourne's Project Finance Group.




Negotiating With Chinese Lenders

Chinese lenders are emerging as a major source of funding in international project finance transactions. 

Developers in various sectors in Asia, Africa, Australasia, the Middle East, Europe and the Americas now routinely consider the option of using Chinese equipment with financing from Chinese lenders. 

Thursday, July 7, 2016

#TBT: Non-Appropriation Risk in Government Contracts


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was first published in the Project Finance Newswire in February 2013 and written by Amanda Rosenberg, an Associate in Chadbourne's Project Finance Group.




Non-Appropriation Risk in Government Contracts


A company with a contract to sell electricity, lease equipment or provide energy savings to a government entity should think carefully about the financeability of the contract.

Many jurisdictions place restrictions on contracts with government entities that straddle two or more fiscal years. The government must reserve the right in the contract not to make payments if the money for payments is not appropriated by the state legislature, county council or other legislative body. The reservation of rights is called a "non-appropriation" clause.

Such a clause can affect financeability. However, by taking a few simple steps, a developer can help protect his interests and ensure a successful financing.

Tuesday, July 5, 2016

Mexico’s Grandfathered Power Projects: An Opportunity for Investors

By Sean McCoy-Cador, in Mexico City

During the summer of 2014, just before Mexican energy reform was enacted, developers rushed to file power generation permits for their projects so that they could keep certain benefits of the then-existing legal regime. Today, such projects, which are known as “grandfathered” or legacy” projects, are very attractive to investors.

The Electricity Industry Law was enacted on August 11, 2014. It created two parallel legal regimes: (i) a so-called “legacy” or “grandfathered” regime granting vested rights to projects holding a power permit or an application filed with the Mexican Energy Regulatory Commission (the “CRE”) before the enactment of the Electricity Industry Law, and (ii) an “electricity market” regime under which projects are subject to burdensome regulations affecting congestion, financial transmission rights, and transmission and distribution fees.