Best Project Finance Lawyers in Hod HaSharon

About Project Finance Law in Hod HaSharon, Israel

Project finance refers to funding long-lived infrastructure and development projects where the debt is repaid from the project cash flows and the project assets, contracts and revenue streams secure the financing. In Hod HaSharon, as in the rest of Israel, project finance is commonly used for energy and renewable energy projects, real estate and urban regeneration, municipal infrastructure, transport, water and waste treatment, and telecoms.

Legal work in project finance focuses on structuring the project, drafting and negotiating project agreements and financing documents, securing permits and land rights, creating the security package for lenders, and addressing regulatory, tax and environmental requirements. Transactions are typically implemented through a special purpose vehicle - a project company - and involve multiple parties: sponsors, equity investors, commercial banks, export credit agencies, insurers, contractors, operators and public authorities.

Why You May Need a Lawyer

Project finance transactions are complex and high-value. A specialised lawyer is important in many situations, including:

- Structuring the deal to allocate commercial, legal and political risks between sponsors, lenders and counterparties.

- Drafting and negotiating core project agreements such as concession agreements, power purchase agreements (PPA), offtake contracts, EPC and O&M contracts, supply contracts and land leases.

- Preparing and negotiating the financing documents - loan agreements, intercreditor agreements, security documents and guarantees - and advising on enforceability and registration of security.

- Conducting legal due diligence on the project company, land title, permits, environmental approvals, corporate matters and material contracts.

- Managing regulatory and permitting processes with local and national authorities, including municipal planning approvals in Hod HaSharon and any required national-level approvals.

- Advising on tax, VAT and customs consequences, and on incentives or grant programs that may be available.

- Handling disputes, enforcement actions, restructurings and insolvency scenarios, including lender remedies and project continuity measures such as step-in rights.

Local Laws Overview

Key legal and regulatory areas that commonly affect project finance in Hod HaSharon include the following.

- Company and corporate law - Corporations are usually structured as special purpose vehicles. Israeli Companies Law governs corporate governance, shareholders rights, director duties and disclosure requirements.

- Contract law - Project agreements and financing documents are governed by Israeli contract principles and, where agreed, by specific clauses allocating risk, termination rights and remedies.

- Secured transactions - Security for lenders commonly includes mortgages over real property, pledges of shares and receivables, and security over movable assets. Israel has modernised movable-property security legislation and a public register for security interests; registration and perfection are critical to enforceability.

- Land and planning law - Land in Israel may be state-owned or privately held. Projects often require municipal planning approvals, zoning changes, building permits and registration in the land registry (Tabu). The Hod HaSharon municipal planning committee and regional planning bodies play an active role in local approvals.

- Public procurement and PPP framework - Where the project involves a public authority, public procurement rules and the PPP framework govern tendering, concessions, and public-private partnership structures. The national PPP unit and Ministry of Finance set procedures for government-backed deals.

- Environmental and regulatory approvals - Projects that affect air, water, noise or waste require environmental permits and compliance with the Ministry of Environmental Protection standards. Energy projects need approvals from the Ministry of Energy and relevant distribution authorities.

- Tax and customs - Corporate tax, VAT, land betterment tax and potential incentives should be considered at the structuring stage. Tax rulings or pre-approvals may be sought in larger transactions.

- Insolvency and restructuring - Israeli insolvency and restructuring rules determine creditor priorities, rescue procedures and cross-border recognition. Agreement clauses such as termination, step-in rights and cure periods must be drafted with insolvency considerations in mind.

Frequently Asked Questions

What is a special purpose vehicle and why is it used?

A special purpose vehicle - SPV - is a company created to own and operate a single project. It isolates project liabilities and makes it easier to ring-fence cash flows for lenders. SPVs also simplify security arrangements because lenders take security over the SPV's shares and project assets rather than over multiple sponsor businesses.

How do lenders typically get security over project assets in Israel?

Lenders obtain a package of security, often including mortgages on real estate, pledges of shares and bank accounts, assignment of project contracts and receivables, security over movable assets and guarantees. Security must be properly documented and registered where required - for example, mortgages in the land registry and movable-asset security in the national security register - to be effective and enforceable.

Do foreign investors face special requirements when investing in Hod HaSharon projects?

Foreign investors can generally participate in Israeli projects, but they should check sector-specific restrictions, approvals and reporting obligations. Some strategic sectors can require security clearance or specific authorisations. Tax residency, withholding taxes and currency exchange rules are also important considerations.

What permits and approvals are commonly required for infrastructure projects?

Typical approvals include municipal planning and building permits, environmental impact assessments and environmental permits, connection approvals from utilities, and sector-specific licenses such as energy generation permits. The exact permits depend on the sector and project scale.

How long does the project finance process usually take?

Timelines vary widely. Pre-development and permitting can take many months to years depending on planning, environmental reviews and municipal processes. Financial close after documentation and due diligence often takes several weeks to a few months. Early and coordinated legal work can shorten avoidable delays.

What is an intercreditor agreement and why is it needed?

An intercreditor agreement governs the relationship between different lenders or classes of secured creditors, setting priorities, enforcement rights and standstill/step-in arrangements. It is essential when multiple financiers or mezzanine lenders participate in the deal.

How are disputes in project finance usually resolved?

Dispute resolution clauses often provide for arbitration or court proceedings. International projects frequently use arbitration to provide neutrality and enforceability across borders. Many Israeli projects use local arbitration institutions or agreed international forums, depending on the parties involved.

Can a lender step into the sponsor's role if the sponsor defaults?

Yes, lenders often negotiate step-in rights that allow them or a nominated substitute to cure defaults, take over the project company or appoint operators to maintain project operations. Step-in rights must be carefully drafted to comply with contract terms and regulatory approvals.

What tax issues should be considered in structuring a project?

Key tax issues include the optimal corporate structure, VAT treatment of supplies and construction, withholding taxes on cross-border payments, possible incentives or exemptions, and transfer pricing if multinational parties are involved. Early tax planning and, where appropriate, advance rulings can reduce surprises.

How much will legal services cost for a project finance transaction?

Legal fees depend on the transaction size, complexity, number of documents, and the level of negotiation required. Fees can be a mix of fixed fees for certain phases and hourly rates for complex negotiation and closing stages. Requesting a clear fee estimate and scope from counsel at the outset helps budget the legal costs.

Additional Resources

- Hod HaSharon Municipality - for local planning, building permits and municipal requirements.

- Israel Land Registry (Tabu) - for land title searches and registrations.

- Ministry of Finance - for public procurement, PPP guidance and financing programs.

- National PPP unit - for public-private partnership procedures and model agreements.

- Ministry of Energy - for licensing and regulatory requirements in power and energy projects.

- Ministry of Environmental Protection - for environmental permits and assessments.

- Registrar of Companies and Israel Companies Authority - for company registration and corporate filings.

- Movable Property Security Register - for registration and searches of security over movable assets.

- Israel Bar Association and local law firms specialising in project finance, banking and infrastructure.

Next Steps

If you need legal assistance with a project finance matter in Hod HaSharon, consider the following practical steps:

- Prepare a clear brief - describe the project, parties, timeline, financing needs and known risks.

- Select counsel with project finance and sector experience - check relevant experience with PPPs, energy, construction, or municipal projects as applicable.

- Request an engagement letter that sets out scope, deliverables, fee structure and estimated timeline.

- Assemble key documents for an initial review - corporate documents, material contracts, land records, permits, financial model and any existing financing agreements.

- Conduct a focused legal due diligence to identify deal breakers and regulatory conditions precedent.

- Use legal advice to shape transaction structure, prepare a lender-friendly security package, and manage permitting and public authority interactions.

- Plan for dispute avoidance - include clear termination, remedy, step-in and escalation mechanisms in contracts.

- If you are a foreign investor, consider early engagement on tax, currency and regulatory clearance issues.

Project finance projects are resource intensive but manageable with the right planning and specialised legal advice. Engage experienced counsel early to protect your interests and keep the transaction on track.