Best Project Finance Lawyers in Mali

About Project Finance Law in Mali

Project finance is a specialized method of funding large-scale infrastructure and industrial projects based on the projected cash flows of the future project rather than the balance sheets of the project sponsors. In Mali, project finance has become increasingly important due to significant investments in sectors such as energy, mining, telecommunications, and transportation infrastructure. The legal framework for project finance in Mali is influenced by a combination of national legislation, OHADA (Organisation pour l'Harmonisation en Afrique du Droit des Affaires) laws, and international best practices.

Why You May Need a Lawyer

Engaging a skilled lawyer is essential for navigating the complexities of project finance in Mali. Common situations where legal assistance is crucial include:

• Drafting, reviewing, and negotiating complex loan agreements and security documents
• Structuring transactions to comply with local and OHADA regulations
• Conducting due diligence on potential lenders, borrowers, or project assets
• Assessing risk allocation in contracts and managing contractual arrangements among multiple parties
• Securing government authorizations, licenses, and permits required for the project
• Resolving disputes or handling defaults in project finance arrangements
• Providing tax and regulatory advice during the lifetime of the project

A lawyer's guidance helps mitigate risks, ensure regulatory compliance, and protect your interests throughout the project lifecycle.

Local Laws Overview

Mali's project finance environment is shaped by domestic laws and regional OHADA regulations. Some key aspects include:

• OHADA Uniform Acts: These include laws on commercial companies, secured transactions, bankruptcy, and enforcement of securities, which are directly applicable in Mali and provide a harmonized legal foundation for business transactions and collateral arrangements.
• Investment Code (Code des Investissements): This provides incentives for investors, stipulates conditions for foreign investments, and sets out the legal framework for investment projects.
• Banking and Financial Sector Laws: Local banking regulations and the oversight of the Ministry of Economy and Finance and the BCEAO (Central Bank of West African States) govern how financing may be sourced and repaid.
• Sector-Specific Legislation: Depending on the type of project, such as mining or energy, sector-specific laws and regulations will apply, including requirements for licenses, environment impact assessments, and local content rules.
• Land and Property Laws: Foreign ownership of land and property is subject to certain restrictions and may require government approval or the use of long-term leases.

Understanding and navigating these legal requirements are essential for a successful project finance transaction in Mali.

Frequently Asked Questions

What is project finance and how does it work in Mali?

Project finance in Mali involves funding large infrastructure or industrial projects by securing loans that are repaid from the future income generated by the project. The financing is typically structured as non-recourse or limited recourse, meaning lenders primarily rely on the project's assets and revenues as collateral.

What laws govern project finance transactions in Mali?

Project finance transactions are primarily governed by a combination of national laws, OHADA Uniform Acts, sector-specific regulations, and international agreements or treaties as applicable.

Are foreign investors allowed to participate in project finance in Mali?

Yes, Mali welcomes foreign investments. However, there are some legal and regulatory conditions and approvals that foreign investors must fulfill, especially regarding land ownership, repatriation of profits, and regulatory compliance.

What types of projects are commonly financed through project finance in Mali?

Projects in energy (such as power plants and renewable energy), mining, transport infrastructure, water supply, and telecommunications are often financed through project finance structures in Mali.

What security interests can lenders take over project assets?

Under OHADA law, lenders can secure their loans with mortgages, pledges over movable assets, assignments of receivables, and other forms of security. Proper registration and documentation are essential.

How are risks typically allocated in project finance agreements?

Risks are allocated through detailed contractual arrangements such as concession agreements, construction contracts, and off-take agreements. Parties often allocate risks based on their ability to manage or mitigate them.

What government approvals are needed for project finance transactions?

Approvals may include investment certificates, sector-specific licenses or permits, environmental impact assessments, and sometimes authorization from the Ministry of Economy and Finance or other regulatory bodies.

How are disputes resolved in project finance in Mali?

Disputes are often resolved through arbitration, in accordance with OHADA's common arbitration framework, or through local courts, depending on the agreement of the parties.

What taxes apply to project finance operations?

Tax obligations include corporate income tax, value-added tax (VAT), customs duties, and sector-specific levies. Mali's Investment Code may offer exemptions or incentives for qualifying projects.

Can lenders enforce their security if the project fails?

Yes, lenders can enforce security interests in accordance with OHADA enforcement procedures and local laws, subject to the proper registration and validity of their security documents.

Additional Resources

For more information or specialized assistance, consider reaching out to the following organizations and governmental bodies:

• Ministry of Economy and Finance of Mali
• Ministry of Mines, Energy and Water of Mali
• Investment Promotion Agency of Mali (API-Mali)
• BCEAO (Central Bank of West African States)
• OHADA (Organisation pour l'Harmonisation en Afrique du Droit des Affaires)
• Chamber of Commerce and Industry of Mali
• Professional law firms specializing in banking and finance law

Next Steps

If you are considering a project finance transaction in Mali or require legal advice, here are the steps you can take:

• Clearly define your project objectives and financing needs
• Gather all relevant documentation relating to the project, including business plans, financial models, and any existing contracts
• Consult with a qualified legal professional experienced in Malian project finance and OHADA law
• Engage financial and technical advisors as needed to ensure your project is viable and attractive to lenders and investors
• Prepare for due diligence by ensuring transparency in your project structure and compliance with applicable laws
• Develop a clear timeline and strategy for securing government approvals and fulfilling regulatory requirements

Seeking timely legal counsel can help you avoid common pitfalls and ensure your project is set on a solid foundation under Malian law.