Best Project Finance Lawyers in Mauritania

About Project Finance Law in Mauritania

Project finance is a method of funding large infrastructure and industrial projects based on the projected cash flows of the project, rather than the balance sheets of its sponsors. In Mauritania, project finance has become increasingly vital in sectors such as mining, energy, oil and gas, and infrastructure development. The legal framework draws on both local regulations and international best practices, accommodating the complex arrangements typically found in project finance deals, including alliances between local and foreign investors, public-private partnerships, and syndicated loans.

Why You May Need a Lawyer

Seeking legal advice is essential when dealing with project finance in Mauritania due to the complexity and scale of the transactions. Common situations that require a lawyer include:

• Structuring cross-border investments or joint ventures
• Negotiating financing agreements with local or international lenders
• Preparing and reviewing security documents, such as pledges or guarantees
• Navigating local permitting and regulatory compliance
• Negotiating contracts with the government or state-owned entities
• Understanding taxation, customs, and foreign exchange regulations
• Resolving disputes related to contracts or financing arrangements
• Ensuring local content and environmental obligations are met

Local Laws Overview

Project finance in Mauritania is governed by a combination of local codes, such as the Commercial Code, Civil Code, and specific sectoral laws (mining, hydrocarbons, energy, public procurement), as well as some international treaties. Key legal aspects include:

• Contract Law: Mauritanian contract law is influenced by French civil law and governs the validity and enforceability of project agreements.
• Security Interests: Proper registration of security interests is required to protect lenders’ rights over assets and revenues.
• Foreign Investment Regulations: Certain projects may benefit from incentives, but compliance with local ownership or partnership requirements is important.
• Environmental Laws: Large projects must undergo environmental review and obtain the proper approvals.
• Taxation and Customs: Tax incentives may be available for qualifying projects, but clear understanding of liabilities is vital.
• Dispute Resolution: Arbitration is commonly accepted for major project finance contracts, but local court procedures may also apply.

Frequently Asked Questions

What types of projects qualify for project finance in Mauritania?

Major infrastructure, energy, mining, oil and gas, and public-private partnership projects are most commonly financed using project finance structures.

Can foreign investors participate in project finance in Mauritania?

Yes, foreign investors are welcome and often participate in large projects. However, some sectors have local participation requirements and specific approval processes.

What security can a lender take in a project finance deal?

Common security types include mortgages over land, pledges over equipment, assignments of project revenues, and bank guarantees. Security interests must be registered to be enforceable.

Are there government guarantees available for project finance projects?

In some cases, especially for strategic infrastructure, the government may issue guarantees or support letters to enhance the creditworthiness of a project.

Are there any special tax incentives for project finance?

Yes, certain priority sectors may benefit from tax holidays or reduced rates. Legal advice is recommended to determine eligibility and comply with procedures.

What is the role of local banks in project finance?

Local banks often participate in syndicates or provide ancillary services, but most large financings involve international lenders due to the scale and complexity.

How long does it take to get all necessary permits and approvals?

Timing varies by sector, but it can take several months to a year or more. Early legal assessment helps identify and manage potential delays.

Is arbitration recognized as a method of dispute resolution?

Yes, arbitration clauses are widely accepted and enforceable under Mauritanian law, particularly for cross-border project finance agreements.

Do I need to set up a local company to participate in project finance?

In many cases, a Special Purpose Vehicle (SPV) registered in Mauritania is used, especially when required by law or by financiers.

What is the impact of currency controls on project finance?

Foreign exchange regulations may affect the repatriation of profits and loan repayments. Early legal advice ensures compliance and helps structure appropriate solutions.

Additional Resources

Several organizations and governmental bodies provide useful information about project finance in Mauritania:

• Ministry of Petroleum, Mines, and Energy - For energy and mining projects
• Ministry of Economic Affairs and Promotion of Productive Sectors
• National Agency for Investment Promotion (APIM)
• Chamber of Commerce, Industry, and Agriculture of Mauritania (CCIAM)
• International Chamber of Commerce (ICC) - Mauritania branch
• Relevant law firms and legal associations experienced in project finance

Next Steps

If you are considering a project finance transaction in Mauritania, it is important to take the following steps:

1. Clearly define your project and financing objectives.
2. Consult with a qualified Mauritanian lawyer or legal team experienced in project finance to assess legal risks and opportunities.
3. Conduct due diligence on applicable laws, permits, and regulatory requirements for your sector.
4. Engage with stakeholders, including government agencies and potential financiers, early in the process.
5. Prepare, review, and negotiate project and financing documents with professional legal assistance.
6. Monitor compliance and establish procedures to address any legal or operational challenges during the life of the project.

Professional legal guidance ensures that your project is structured, documented, and implemented in line with local law and international standards.