Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
Refine your search by selecting a city.
Project finance is a method of funding large infrastructure and industrial projects. In Australia, project finance typically involves the creation of a separate legal entity for the project, with the project's assets and revenue used as collateral for the loan. The finance structure is usually non-recourse or limited recourse, meaning that lenders have limited or no claim to the other assets of the project sponsors if the project fails. Commonly financed projects include energy facilities, transport infrastructure, mining developments, and public-private partnerships.
Australia is recognised for its stable legal and regulatory environment, making it an attractive location for project finance. The law governing such transactions involves a complex interplay between contract law, property law, corporate law, and various regulatory requirements specific to the project's sector.
Project finance transactions involve multiple parties, significant capital, and long-term contractual obligations. You may need a lawyer if you are:
Legal advice can be crucial in drafting and reviewing contracts, identifying and managing risks, and ensuring the project complies with all relevant Australian laws and regulations.
Australia’s legal system is based on common law, and several key legal aspects influence project finance:
Non-recourse means lenders can only claim against the project assets and revenues, not against the sponsors’ other assets, if the project cannot repay its loans. Limited recourse may provide lenders with some additional but restricted claims.
Large-scale infrastructure projects such as power stations, wind and solar farms, mining operations, toll roads, and public infrastructure developments are often financed this way.
Risks include regulatory changes, construction delays, cost overruns, lender enforcement rights, security over project assets, and the allocation of liabilities in project contracts.
Depending on the project, approvals may include environmental impact assessments, planning permits, foreign investment clearance, and sector-specific permits (like mining or energy generation licenses).
PPPs involve collaboration between government and private entities to deliver and operate public infrastructure. They are governed by state or territory guidelines and structured to allocate risk and responsibility efficiently.
Yes, subject to foreign investment approval and compliance with relevant laws. The Foreign Investment Review Board (FIRB) assesses major investments by non-residents.
Security interests in personal property must be registered on the Personal Property Securities Register (PPSR) to protect the lender's rights and priority if the borrower defaults.
Project finance structures address this with step-in rights, restructuring options, and insolvency procedures. Legal advice is crucial to navigate defaults or restructuring.
Considerations include corporate income tax, goods and services tax (GST), withholding tax on cross-border payments, and potential stamp duty on certain transactions.
Even for smaller projects, legal advice ensures compliance with laws, proper risk allocation, and protection of your financial interests.
If you are seeking more information on project finance in Australia, the following resources can be helpful:
If you believe you require legal assistance for a project finance matter in Australia, consider the following steps:
Engaging a lawyer early in the process can help avoid delays, legal pitfalls, and unexpected costs, ensuring your project achieves its commercial and legal objectives.
