Best Project Finance Lawyers in Havana

About Project Finance Law in Havana, Cuba

Project finance is a specialized area of law involving the funding of large-scale infrastructure and industrial projects using a non-recourse or limited recourse financial structure. In Havana, Cuba, project finance is typically used for public works, energy generation, tourism infrastructure, and other significant development projects. The legal framework reflects both domestic regulations and aspects of international commercial practice due to the involvement of foreign investors and multilateral institutions. Lawyers skilled in this field guide clients through complex contract negotiations, regulatory requirements, and risk allocations that are unique to the Cuban business landscape.

Why You May Need a Lawyer

Project finance transactions in Havana often involve multiple parties, including government agencies, state-owned enterprises, foreign investors, and lenders. Individuals and businesses may need a lawyer for several reasons:

• Structuring and negotiating project finance agreements
• Understanding regulatory requirements for foreign investment
• Conducting due diligence for project feasibility
• Securing government permits and approvals
• Managing risks and compliance with local laws
• Resolving disputes between project stakeholders
• Drafting and reviewing contracts, including concession and engineering agreements
• Advising on currency controls and transfer of funds
• Navigating joint ventures with Cuban entities
• Ensuring compliance with environmental and labor regulations

Local Laws Overview

Project finance in Havana is primarily regulated by Cuban civil, commercial, and investment laws. Key aspects that are particularly relevant include:

• Foreign Investment Law (Law No. 118 of 2014): This law outlines how foreign entities can invest in Cuban projects, the required government approvals, permitted sectors, and guarantees for investors.
• Special Development Zones: The Mariel Special Development Zone (ZED Mariel) offers unique incentives for project finance activities, including customs, tax, and labor benefits.
• Contracting with State Entities: Most large projects involve state participation or oversight, requiring compliance with public procurement and concession processes.
• Banking and Currency Controls: Currency convertibility and profit repatriation are carefully regulated, affecting how funds are received, disbursed, and transferred offshore.
• Environmental and Labor Laws: Projects must comply with Cuban environmental protection statutes and labor codes, including requirements regarding local hiring and working conditions.

Contracts are typically governed by Cuban law and often require adaptation to fit local legal standards. Local counsel is usually necessary to navigate these details and to interface with Cuban regulatory authorities.

Frequently Asked Questions

What is project finance and how is it used in Havana, Cuba?

Project finance refers to funding through loans or equity specifically for a particular project, where repayments are made from the project's cash flows. In Havana, it is common for infrastructure, energy, and tourism projects.

Can foreigners participate in project finance arrangements in Cuba?

Yes. Foreign investors can participate, particularly through joint ventures or economic associations with Cuban state enterprises, but must comply with Cuban investment laws and secure necessary approvals.

What government approvals are required for a project finance deal in Havana?

Foreign investment and major project finance deals require approval from the Cuban Ministry of Foreign Trade and Investment (MINCEX) and other sector-specific ministries.

Are international lenders permitted to finance projects in Havana?

International lenders may provide finance, subject to Cuban regulations and negotiation of appropriate contractual arrangements, often involving state banking entities as intermediaries.

How are disputes resolved in project finance agreements in Havana?

Disputes are commonly resolved through negotiation or Cuban courts. Some contracts may include arbitration clauses, but Cuban law generally governs the proceedings.

Is it possible to repatriate profits from a project in Cuba?

Profit repatriation is permitted under certain conditions and subject to tax obligations, provided all regulatory requirements are met and approved by Cuban authorities.

What are the tax implications for project finance in Cuba?

Corporate income tax, labor taxes, and other fees apply. Special tax incentives are often available in development zones like ZED Mariel. Tax structuring should be confirmed with legal counsel.

Is local participation required in project finance ventures?

Most large projects require a Cuban partner, generally a state-owned company. The proportion of local involvement varies by sector and project size.

How long does it take to finalize a project finance deal in Havana?

Approval and negotiation processes can be lengthy, often taking several months or even longer, depending on project complexity and required government authorizations.

Do I need a Cuban lawyer for project finance matters?

Given the complexity of Cuban laws and procedures, especially with regulatory authorities and contract law, working with a licensed Cuban lawyer is highly recommended.

Additional Resources

Individuals and businesses seeking further information or support can consider the following resources:

• Ministry of Foreign Trade and Investment (Ministerio del Comercio Exterior y la Inversión Extranjera - MINCEX)
• Chamber of Commerce of the Republic of Cuba (Cámara de Comercio de la República de Cuba)
• Mariel Special Development Zone Office (Oficina de la Zona Especial de Desarrollo Mariel)
• National Association of Cuban Jurists (Unión Nacional de Juristas de Cuba)
• Cuban Central Bank (Banco Central de Cuba), for currency and banking regulations

Next Steps

If you are considering entering into a project finance arrangement or need legal advice for an existing project in Havana, it is important to:

• Outline your project idea or current situation, identifying key goals
• Consult with a licensed Cuban lawyer who specializes in project finance law
• Gather documents pertaining to your project, such as business plans, partnership agreements, and correspondence with authorities
• Assess which permits, approvals, or partners may be necessary for your project
• Work with your legal counsel to develop a compliance strategy and risk assessment plan
• Initiate contact with relevant government agencies early in the process to confirm requirements and timelines

Making informed decisions with qualified legal support is essential for navigating the unique challenges and opportunities of project finance in Havana, Cuba.