Best Project Finance Lawyers in Arona

1. About Project Finance Law in Arona, Spain

Project finance is a funding approach where lenders look primarily to the cash flow of a specific project rather than the sponsor’s balance sheet for repayment. In Arona, this structure is popular for energy projects, infrastructure developments, and large public works that involve private partners with public authorities. A typical setup uses a special purpose vehicle (SPV) to own the project assets and contractual arrangements that allocate risks among sponsors, lenders, and off-takers.

In practice, Arona developers often rely on SPVs, long‑term power purchase agreements, EPC and O&M contracts, and intercreditor arrangements to align interests and secure non-recourse or limited recourse debt. Lawyers in this field must coordinate corporate, finance, and regulatory issues to enable smooth closing and ongoing operations. Effective support covers due diligence, permit control, contract drafting, and risk allocation in line with national and Canary Islands requirements.

Because project finance involves complex multi-party arrangements, a local solicitor or attorney with Canary Islands experience can be crucial. They help navigate Spanish corporate law, public procurement rules, energy regulations, and cross-border lender expectations. With Arona’s recent development plans, legal counsel can also assist in aligning project timing with municipal planning calendars and environmental reviews.

2. Why You May Need a Lawyer

In Arona, project finance transactions raise concrete legal issues that benefit from specialized counsel. Below are real-world scenarios where a Project Finance solicitor can add value.

• You win a municipal concession bidding for a new public market in Arona and need to draft and negotiate the concession contract, permits, and performance guarantees.
• You are financing a solar PV project on Tenerife and require bankable PPAs, intercreditor arrangements, and security packages that align with Spanish and Canary Islands procurement norms.
• Your SPV needs to acquire land and secure environmental licenses; a lawyer helps with due diligence on title, encumbrances, and planning restrictions specific to Arona.
• You are restructuring a cross-border financing for an infrastructure project and need currency hedging, cross-border security, and lender coordination across jurisdictions.
• You must comply with public procurement rules for a PPP in Arona; a solicitor helps align the project timetable with Ley 9/2017 and EU directives on procurement.
• You are negotiating a complex intercreditor agreement and need precise waterfall provisions, governance terms, and assignment rights for lenders.

3. Local Laws Overview

Project finance in Spain and Arona is guided by national laws that apply throughout the archipelago. The key statutes commonly used in these transactions include the following.

• Texto Refundido de la Ley de Sociedades de Capital (Real Decreto Legislativo 1/2010, de 2 de julio). This consolidated law governs corporate structure, capital, directors, and share transfers for SPVs used in project finance. It provides the base framework for equity issuance and governance controls in SPVs.
• Ley 9/2017, de 8 de noviembre, de Contratos del Sector Público. This law transposed EU public procurement directives and governs how public authorities in Arona select private partners for projects, including bidding, award criteria, and transparency requirements. It is central to PPP and concession arrangements.
• Ley 24/2013, de 26 de diciembre, del Sector Eléctrico. This energy sector law regulates generation, transmission, distribution, and market access for electrical projects, including PPAs, capacity mechanisms, and tariff rules that affect project economics.

These statutes establish the standard rules for project finance in Arona, with consistent application across the Canary Islands. Recent adjustments to public procurement and energy regulation reflect EU alignment and market evolution.

Public procurement rules in the EU require fair and transparent bidding for infrastructure projects.

Source: Directive 2014/24/EU on Public Procurement.

Spain’s electricity sector is regulated by Ley 24/2013 and subsequent amendments to ensure market access and fair pricing.

Source: EU framework for energy market regulation.

4. Frequently Asked Questions

What is project finance in simple terms?

Project finance uses the project’s cash flow to repay lenders, with the SPV isolating risk from sponsors. It relies on defined contracts and debt instruments rather than sponsor balance sheets.

How does a project finance SPV work in Arona?

An SPV is created to own project assets, enter into contracts, and borrow. Lenders rely on project performance and assets rather than the parent company for repayment.

What is a non-recourse loan?

A non-recourse loan is repaid primarily from project cash flows and asset value. If the project underperforms, lenders have limited recourse to sponsors.

How long does due diligence take for a project in Arona?

Due diligence typically runs 6 to 12 weeks depending on asset type, permits, and counterparty reliability. A well-prepared data room shortens the process.

Do I need a local Arona lawyer for a PPP?

A local solicitor helps with municipal procedures, planning approvals, and Canary Islands-specific requirements. Local familiarity speeds negotiations.

What costs should I expect in a project finance deal?

Typical costs include due diligence fees, legal fees for contract drafting, and bank fees for structuring, hedging, and closings. Counsel can help estimate these upfront.

Is a PPA required for energy projects in Arona?

Many projects rely on PPAs with off-takers or the state market. PPAs secure revenue streams and impact debt capacity and lender confidence.

What is the difference between project finance and corporate finance?

Project finance centers on a single asset or portfolio with a dedicated SPV, while corporate finance relies on the sponsor's overall balance sheet for financing.

Can foreign lenders participate in Arona projects?

Yes, foreign lenders may participate, subject to regulatory approvals, exchange controls, and cross-border security arrangements.

Should I sign documents before I have local regulatory approvals?

No. Advance commitments can create exposure if permits lapse or conditions change. Legal counsel should align closing with regulatory milestones.

Do I need to be in Spain to finalize a project finance deal?

Many transactions can be executed remotely, but face-to-face meetings often expedite negotiations. A local attorney helps manage signatures and registrations.

5. Additional Resources

• EUR-Lex EU Legislation Portal - Official EU legislative texts and directives related to public procurement and energy market regulation. eur-lex.europa.eu
• European Investment Bank (EIB) - Provides project finance funds, advisory services, and sector guidance for infrastructure and energy projects. eib.org
• Ayuntamiento de Arona - Official information on local planning, permits, and procurement relevant to projects in Arona. arona.org

6. Next Steps

1. Define your project scope and financing objective, including expected cost, timeline, and location in Arona. Set a target closing date and debt capacity.
2. Identify a Project Finance solicitor in Arona with experience in SPVs, public procurement, and energy or infrastructure deals. Schedule an initial consultation.
3. Assemble a data room with project documents, site details, permits, off-take agreements, and existing contracts. Prepare a draft term sheet for lenders.
4. Request a preliminary risk assessment from your counsel, outlining regulatory, environmental, and land-use considerations affecting structuring.
5. Negotiate a term sheet and draft project documents (PPA, EPC, O&M, intercreditor, security). Align with Ley 9/2017 and Ley 24/2013 requirements.
6. Submit necessary regulatory approvals and permits while finalizing due diligence; ensure compliance milestones are achievable within the timetable.
7. Close the financing, finalize legal documentation, and begin project operations with ongoing legal oversight for compliance and dispute avoidance.