Best Project Finance Lawyers in Burkina Faso

About Project Finance Law in Burkina Faso

Project finance refers to the method of funding large-scale infrastructure and industrial projects through a structure where repayment is made primarily from the project's cash flow, rather than the balance sheets of project sponsors. In Burkina Faso, project finance is increasingly popular in sectors like mining, energy, transportation, and telecommunications. The legal environment for project finance is continuously developing, influenced by foreign investment, international best practices, and collaboration with regional and international financial institutions.

Why You May Need a Lawyer

Navigating the complexities of project finance in Burkina Faso often requires specialized legal assistance. Here are some common situations where a lawyer can be indispensable:

• Drafting and reviewing project finance agreements, including loan agreements, security documents, and partnership contracts.
• Advising on regulatory compliance with Burkinabe laws and international standards.
• Structuring deals to attract local and foreign investors while managing risk.
• Handling disputes between parties involved in a project.
• Negotiating terms with government authorities, especially regarding land use, environmental regulations, and public-private partnerships.
• Ensuring compliance with foreign exchange controls and repatriation of profits.

Local Laws Overview

Project finance in Burkina Faso is regulated by a mix of national laws and regional agreements, particularly those established by the West African Economic and Monetary Union (WAEMU) and the Organisation for the Harmonisation of Business Law in Africa (OHADA). The most relevant aspects include:

• OHADA Uniform Acts: These provide a harmonized business law framework, governing companies, securities, insolvency, and contractual obligations.
• Public-Private Partnership Law: Burkina Faso has adopted frameworks that encourage public-private partnerships in strategic sectors.
• Banking and Financial Regulations: The Central Bank of West African States (BCEAO) oversees monetary and banking regulations, which impact the legal structuring of project finance.
• Foreign Investment Laws: Laws and incentives exist to attract foreign capital while protecting domestic interests.
• Land Ownership and Transfer: All land is owned by the state, subject to various forms of rights and concessions. Clear title and usage rights are critical in project finance transactions.
• Environmental and Social Impact: Projects must adhere to environmental regulations, including the submission of Environmental and Social Impact Assessments (ESIA).
• Taxation: Tax incentives are available for certain projects, but careful attention must be paid to compliance and treaty advantages.

Frequently Asked Questions

What is project finance, and how does it work in Burkina Faso?

Project finance is a funding technique where lenders rely primarily on the project’s future cash flows for repayment, with the assets and rights of the project acting as collateral. In Burkina Faso, this structure is used mainly in infrastructure and energy projects and often involves international and local partners working within a specific legal and regulatory framework.

Which sectors commonly use project finance in Burkina Faso?

The main sectors include mining, power generation, transportation infrastructure (roads, rail, airports), telecommunications, and water treatment projects.

What legal difficulties can arise in project finance transactions?

Common challenges include land acquisition, obtaining regulatory approvals, negotiating risk allocation among parties, securing financial close, and navigating evolving tax or environmental laws.

Are foreign investors allowed to participate in project finance deals?

Yes, foreign investors are encouraged in Burkina Faso, especially for substantial infrastructure projects. There are legal protections in place for foreign investments, but investors must comply with local regulations and registration requirements.

What are the typical security interests used in Burkina Faso for project finance?

Security interests often include mortgages over land rights, pledges of shares, assignments of project revenues, and movable asset collateral, governed by OHADA Uniform Acts.

How are disputes in project finance projects resolved?

Disputes may be resolved through local courts or, more commonly in large projects, through arbitration, either in Burkina Faso or at international arbitration centers specified in contracts.

Are government guarantees commonly provided?

Government guarantees are sometimes provided, especially for projects of national priority or those involving public-private partnerships. They will be subject to negotiation and legal review.

What environmental requirements must be met?

All major projects must undergo an Environmental and Social Impact Assessment (ESIA) and receive approval from relevant government agencies before construction or operation can begin.

Can I repatriate project profits abroad?

Yes, it is generally permitted under Burkina Faso law and WAEMU regulations, provided all tax obligations have been fulfilled. Exchange controls and proper registration with the central bank may apply.

What incentives does Burkina Faso offer to project developers?

The government provides various incentives, such as tax holidays, customs exemptions, and access to special economic zones, especially for projects that contribute to economic development and employment.

Additional Resources

If you are seeking further information or assistance, the following resources can be helpful:

• Burkina Faso Ministry of Economy, Finance and Development - handles investment promotion and incentives.
• OHADA National Commission - provides information on the application of OHADA business laws.
• Central Bank of West African States (BCEAO) - regulates banking and financial sector laws.
• Burkina Faso Investment Promotion Agency (API-BF) - supports foreign and local project developers.
• Burkina Faso Chamber of Commerce and Industry - guides on business formation and commercial regulations.

Next Steps

If you are considering a project finance transaction in Burkina Faso or facing legal challenges with an existing project, consider the following steps:

• Prepare an outline of your project, identifying all parties involved and the nature of the transaction.
• Collect all relevant documents, including contracts, permits, land rights, and financial projections.
• Contact a qualified lawyer with experience in project finance and familiar with Burkinabe and OHADA law.
• Schedule a consultation to discuss your objectives, legal risks, and compliance requirements.
• Stay updated on regulatory developments and best practices by following governmental and industry sources.
• Consider working with local advisors and consulting the resources mentioned above for ongoing support.

Prompt and professional legal advice can help ensure the successful financing, execution, and operation of your project in Burkina Faso.