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Project finance is a specialized field of law and finance that involves structuring, financing, and managing large-scale projects, most commonly in infrastructure, energy, and construction. In Amman, Hashemite Kingdom of Jordan, project finance plays a crucial role in facilitating the development of key public and private sector initiatives, including public-private partnerships (PPPs), energy plants, roads, utilities, and other large investment projects. Unlike traditional corporate finance, project finance focuses on the project’s future cash flows and assets for repayment, using complex contractual agreements and risk allocation strategies.
Project finance transactions in Amman can be intricate, involving multiple stakeholders, detailed contracts, regulatory requirements, and significant investment sums. Hiring a qualified project finance lawyer can help navigate and mitigate risks in scenarios such as:
Legal counsel is essential for minimizing risks, safeguarding your investment, and ensuring the project’s legal and financial viability.
Project finance in Amman is shaped by a variety of laws, regulations, and government policies. Key local laws and frameworks include:
Contract law, public procurement guidelines, and relevant sector-specific regulations (such as energy, water, or transport) may also impact project finance agreements in Amman.
Project finance is a method of funding in which the project's assets, rights, and future cash flows serve as collateral for the loan, instead of relying on the entire balance sheet of the borrower, as is common in corporate finance.
Infrastructure projects (roads, airports, ports), power generation (renewables and conventional), water treatment, telecommunications, and sizable real estate developments frequently use project finance structures in Amman.
Yes, foreign investors can participate in project finance deals, subject to compliance with local investment laws, sector-specific restrictions, and sometimes the need for a local partner or specific approvals.
Special purpose vehicles (SPVs), joint ventures, and limited liability companies are commonly used to isolate project risks and assets from sponsors’ or investors’ other business interests.
Key risks include construction delays, cost overruns, regulatory changes, force majeure events, operational risks, currency and interest rate fluctuations, and counterparty risks.
The government may provide guarantees, take-or-pay contracts, or other forms of support to enhance project creditworthiness, especially in PPP or public infrastructure projects.
Yes, Jordan has enacted PPP legislation that outlines procedures, rights, obligations, risk allocation, and dispute resolution mechanisms for public-private partnership projects.
Depending on the project, approvals may be required from various authorities, such as the Ministry of Industry and Trade, the Ministry of Environment, local municipalities, and sector-specific regulatory agencies.
Disputes may be resolved via local or international arbitration, as specified in project agreements, or through Jordanian courts, depending on the parties’ contractual wording.
While certain contracts may be governed by foreign law, local law often applies to regulatory, licensing, land, and security matters. A legal advisor can clarify the appropriate jurisdiction and governing law for each agreement.
For additional guidance, consider consulting:
If you require legal assistance with project finance in Amman, start by clarifying your project’s scope, objectives, and funding needs. Gather all relevant documents and consult a legal professional experienced in project finance law in Jordan. A lawyer can:
Do not hesitate to reach out to reputable law firms or legal consultants who specialize in project finance in Amman. Legal expertise is vital to ensuring your project’s legal soundness and financial success.
