Best Project Finance Lawyers in Arlon

About Project Finance Law in Arlon, Belgium

Project finance in Arlon, Belgium typically uses a Special Purpose Vehicle (SPV) to own and operate a project, with lenders repaid from the project’s cash flows rather than the sponsors’ balance sheets. This structure requires detailed contracts, including a power purchase agreement or off-take contract, construction contracts, and long term operation and maintenance arrangements. Belgian law governs the formation of the SPV, security interests, and the sequencing of closing conditions with lenders and contractors.

In Arlon and throughout Wallonia, project finance transactions are influenced by Belgian corporate law, securities law, and public procurement rules at regional and federal levels. Cross-border deals with Luxembourg or other EU jurisdictions are common and require careful choice of governing law and dispute resolution provisions. A local avocat (lawyer) in Arlon can help harmonize Belgian requirements with EU directives that apply to project finance.

Recent years have seen continued use of project finance for infrastructure, energy and PPP projects in Belgium, with lenders increasingly focusing on project cash flows, offtake agreements, and robust due diligence. The legal framework supports risk allocation among lenders and sponsors while ensuring compliance with anti-money laundering, tax, and regulatory standards. This guidance summarizes practical considerations for residents of Arlon seeking project finance advice.

Why You May Need a Lawyer

Engaging an avocat in Arlon early in a project finance deal helps prevent costly missteps and ensures compliance with Belgian and EU rules. Below are concrete, real-world scenarios where legal counsel is essential.

• Wind or solar project near Arlon requiring non recourse debt and a long term PPA: A local avocat can structure the SPV, secure project assets, and negotiate the PPA with the off taker while aligning with Belgian corporate and security law.
• Municipal PPP concessions for a new hospital or school in Wallonia: You need to navigate public procurement law, concession agreements, and regional financing rules while coordinating with the local government and lenders.
• Cross-border financing with Luxembourg lenders for a Belgian project: The lawyer coordinates choice of law, security packages, and cross-border enforcement with both Belgian and Luxembourg counsel.
• Refinancing an existing project financed by banks and institutions: A lawyer helps renegotiate covenants, extend debt maturity, and realign security interests to current market practice.
• Compliance with AML and KYC requirements in project financing: Avocat ensures proper customer due diligence, beneficial ownership disclosures, and reporting obligations are met.
• Acquiring rights in a project under Belgian public procurement rules: You may need bid compliance advice, contract novation, and adherence to procurement procedures to avoid challenges.

Local Laws Overview

Below are 2-3 key laws and regulations commonly referenced in Belgian project finance transactions, with context on their scope and recent relevance.

• Code des sociétés et des associations (CSA) - The modern code governing corporate forms, governance, and related transactions in Belgium. The CSA took effect in 2019 with transitional provisions guiding the shift from the former Company Code; it affects how SPVs are structured, how shares are held, and how corporate decisions are documented. Recent updates continue to refine corporate governance requirements for Belgian entities including SPVs used in project finance.
• Law of public procurement and concessions (Law of 17 June 2016, with implementing regulations) - Governs how public contracts and concessions, including PPP arrangements, are tendered and awarded in Belgium. The regime is designed to align with EU directives and has been updated to reflect evolving procurement thresholds and procedures. This is highly relevant for Arlon project finance involving public sector partners or concessions for infrastructure projects.
• Law on the prevention of money laundering and terrorist financing (AML Law, Law of 18 September 2017) - Establishes due diligence,Know Your Customer (KYC), and beneficial ownership obligations for financial transactions. It affects sponsor due diligence, third party risk assessment, and ongoing monitoring in project financings staged from Arlon or Wallonia. Updates have addressed enhanced transparency and compliance practices across the financial sector.

Notes on jurisdictional scope: Belgian project finance often involves federal rules plus regional rules in Wallonia, where Arlon sits. Notarial deeds, security interests, and SPV formation frequently require coordination among federal law, Walloon regulations, and EU directives. For precise dates and current applicability, consult a Belgian avocat in Arlon who tracks ongoing reforms and regional implementations.

Frequently Asked Questions

What is project finance in Belgium?

Project finance uses an SPV to finance a project with repayment primarily from project cash flows. Sponsors contribute equity but lenders rely on the project’s performance and off take agreements rather than on sponsor balance sheets. Avocats help structure the SPV and negotiate all key contracts.

How do I start the project finance process in Arlon?

Begin with a feasibility assessment and define the SPV structure. Engage an Arlon avocat early to draft term sheets, identify collateral, and coordinate with lenders and authorities. Establish a data room for due diligence and set milestones for closing.

Do I need a Belgian SPV for project finance?

Yes, most projects use a local SPV to own assets and contractually allocate risk. The SPV isolates project risks from sponsors and enables clear debt service from project cash flows. A local advocaat will ensure the SPV conforms with CSA requirements and Belgian security regimes.

How long does a typical project finance closing take in Belgium?

Close times vary by project type and complexity. A straightforward energy project can close in 4 to 8 months after initial term sheets, while larger PPPs may take 9 to 18 months. A lawyer helps manage due diligence, approvals, and lender consents to keep timelines on track.

What costs are involved in securing project finance?

Costs include legal fees for counsel, lenders' legal fees, due diligence costs, and potential government or regional filing fees. Legal fees depend on project complexity and the scope of banking documentation required for security packages and intercreditor agreements.

What is a PPA and who signs it in Belgium?

A PPA is a long term off take agreement between the project company and a buyer of power or energy. The SPV typically signs the PPA, with counterparty approvals and credit support arranged by the sponsor and lenders as part of the financing package.

Do I need a local avocat for PPP projects in Wallonia?

Yes. Wallonia and federal rules interact for PPPs, so local expertise ensures proper tender compliance, contract drafting, and risk allocation. An Avocat in Arlon can coordinate with regional authorities and lenders for efficient closing.

What is the role of lenders and investors in project finance?

Lenders provide long term debt based on projected cash flows and contractual protections. Investors may supply equity and may participate through structured equity, mezzanine debt, or sponsor guarantees. The lawyer coordinates negotiations to align protections and remedies.

What is the difference between project finance and corporate lending?

Project finance relies on project assets and cash flows as the primary security, not the sponsor's balance sheet. Corporate lending depends more on the overall financial strength of the sponsor. The former requires more extensive contract and risk allocation documentation.

How are security interests registered in Belgium?

Security interests are typically perfected through notarial deeds, registry filings, and perfection of pledges or mortgages on project assets. An avocat guides the process to ensure enforceability and priority among lenders and investors.

Can cross-border lenders participate in a Belgium project?

Yes, cross-border lenders frequently participate in Belgium project finance. The lawyer coordinates governing law, dispute resolution, and cross-border security packages to ensure enforceability in multiple jurisdictions.

Do I need to disclose beneficial ownership under AML rules?

Yes, Belgian AML rules require beneficial ownership disclosures and ongoing due diligence. An avocat ensures all disclosures are accurate and timely to comply with obligations while avoiding delays in financing.

Additional Resources

Use these authoritative resources to deepen your understanding of project finance concepts and cross-border considerations. Each resource provides official or widely recognized guidance relevant to project finance.

• World Bank - Project Finance overview
• European Investment Bank - Project Finance
• OECD - Public-Private Partnerships

Next Steps

1. Clarify project scope and choose the SPV structure. Draft the initial business plan and project milestones within 2 weeks.
2. Engage an Avocat in Arlon who specializes in project finance and cross-border matters. Obtain a written engagement letter within 1 week of initial contact.
3. Prepare a data room and gather key documents (contracts, permits, permits, permits) for due diligence within 3-6 weeks.
4. Develop a preliminary term sheet with lenders and identify funding sources (debt, equity, guarantees) within 4-8 weeks.
5. Negotiate and finalize the SPV documents, security package, and project contracts (PPA, EPC, O&M) with your avocat and lenders over 6-12 weeks.
6. Obtain necessary regulatory and public approvals, complete AML/KYC checks, and finalize closing conditions within 4-16 weeks.
7. Execute closing and commence operations, with ongoing compliance and reporting managed by your legal counsel as part of governance.