Best Project Finance Lawyers in Paraná

1. About Project Finance Law in Paraná, Argentina

Project finance in Paraná, Argentina generally follows the national legal framework rather than a separate provincial code. Most deals rely on a project company or special purpose vehicle (SPV) that finances, builds, and operates a project with creditors secured by project assets and cash flows. The Civil and Commercial Code and the Commercial Companies Law provide the backbone for SPV formation, contracts, and security interests.

The typical structure uses non-recourse or limited-recourse financing where lenders look primarily to the project assets and contracts for repayment. In Paraná, developers must coordinate with provincial and municipal authorities for environmental, land use, and permitting matters, while lenders often require intercreditor, security, and off-take arrangements. Contracting related to EPC, operation and maintenance, and supply agreements all play a central role in the project finance package.

Argentina relies on SPVs and project cash flows to support non-recourse debt, with the Civil and Commercial Code governing contracts and securities.

Source: Argentina Government Normative Portal

Foreign currency flows and cross-border financing are regulated by the Central Bank of Argentina, influencing how funds are raised and repatriated for project finance.

Source: Banco Central de la República Argentina

In Paraná, local environmental and land-use approvals, municipal permits, and grid interconnection with the national electricity market (CAMMESA) are essential steps to secure finance. The trend toward sustainable finance and green project incentives has grown, aligning with national policy and international investor expectations.

2. Why You May Need a Lawyer

• Structuring an SPV for a Paraná project - You need counsel to choose the right corporate vehicle (for example, a sociedad anónima or other form under Ley 19.550) and to draft articles of association, governance, and intercreditor arrangements.
• Negotiating EPC and O&M contracts for a wind or hydro project - A lawyer helps align performance guarantees, timelines, change orders, and risk allocation with lenders and offtakers, ensuring enforceable security interests.
• Coordinating permits with provincial and municipal authorities - You will require environmental licenses, land use approvals, and zoning clearances that affect project timelines and financing covenants.
• Cross-border finance involving Brazilian lenders or investors - Counsel is needed for currency controls, repatriation of profits, and cross-border tax considerations under national and regional regimes.
• Negotiating security packages and intercreditor agreements - A lawyer ensures that lenders have clear priority over assets, cash flows, and contracts in case of default or restructuring.
• Insolvency or restructuring planning - If a sponsor experiences financial stress, you need counsel to navigate local bankruptcy or restructuring rules under national law.

3. Local Laws Overview

• Ley de Sociedades Comerciales (Law 19.550) - Governs the formation, governance, and corporate matters for SPVs used in project finance. This law supports the creation of liability structures and shareholding arrangements necessary for non-recourse debt financing. Effective since 1972 and amended multiple times.
• Código Civil y Comercial de la Nación - Consolidated civil and commercial code that regulates contracts, obligations, property rights and security interests applicable to project finance agreements. Enacted as Law 26994 and fully in force since 2015, it shapes how project contracts are drafted and enforced.
• Ley de Quiebras y Concursos (Concurso y Quiebras, Law 24.522) - Governs insolvency proceedings, restructurings, and creditor rights in Argentina, which can affect debt workout scenarios in project finance. Originally enacted in 1995 with later updates.

In addition to national laws, provincial and municipal permitting regimes in Entre Ríos and Paraná city regulate environmental and land-use approvals that impact project timing and compliance costs.

Source: Argentina Government Normative Portal

Cross-border financing is subject to macroeconomic policy and foreign exchange rules administered by the Central Bank of Argentina, which can influence loan structuring and currency risk management.

Source: Banco Central de la República Argentina

4. Frequently Asked Questions

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

Project finance uses a dedicated SPV to own the project and repay debt from project cash flows. Lenders focus on the viability of the project and contractual arrangements rather than the sponsor's balance sheet. In Paraná, you must align with national contract law and local permits.

How do I start an SPV for a Paraná project under local law?

Start by choosing a corporate form under Ley 19.550, draft the by-laws, appoint directors, and establish a shareholders agreement. Then secure key contracts and lenders' conditions before closing.

What permits are typically required in Paraná for a renewable project?

Environmental licenses, land-use approvals, and water or land rights may be required from provincial authorities and the municipality of Paraná. Permits impact financing covenants and construction timetables.

Do I need to worry about currency controls for cross-border financing?

Yes. The Central Bank regulates currency exchange and repatriation of funds for project finance deals. Plan for potential FX restrictions and hedging strategies at the outset.

How long does a typical Paraná project finance deal take to close?

Execution timelines vary with project complexity, but a renewable energy deal often requires 6 to 18 months from term sheet to closing, depending on permitting and lender due diligence.

What documents are essential for lender due diligence in Paraná?

Project contracts, SPV incorporation documents, environmental approvals, intercreditor agreements, and off-take arrangements are key. Lenders also review project budgets and risk mitigation plans.

What are common security interests used in Paraná project finance?

Lenders typically require liens on project assets, assignment of permits and contracts, and guarantees from sponsors. Security packages are negotiated through intercreditor agreements.

Can a Paraná project be funded with both local and foreign lenders?

Yes. Financing often combines local banks and international lenders, with careful structuring to address currency, tax, and regulatory compliance concerns.

What is the role of CAMMESA in Paraná projects?

CAMMESA coordinates wholesale electricity markets in Argentina, affecting energy project revenue streams and interconnection obligations. Projects must align with market rules and transmission access.

How is tax treatment handled for project finance in Paraná?

Tax considerations include income tax on the SPV, VAT on goods and services, and potential incentives for renewable investments. Counsel can optimize contract structures to manage tax risk.

What happens if a project hits a dispute or default?

Remedies are typically found in contract dispute resolution provisions, security enforcement, and, if required, insolvency or restructuring processes under national law.

Is there a difference between SPVs in Paraná and other provinces?

The core SPV concept remains the same, but provincial environmental and permitting processes can differ. Local counsel helps ensure compliance with Paraná and Entre Ríos requirements.

5. Additional Resources

• Argentina Normativa Portal - Official government site with access to legislation and regulatory texts across Argentina. https://www.argentina.gob.ar/normativa
• CNV - Comisión Nacional de Valores, regulator of capital markets and securities offerings in Argentina. https://www.cnv.gob.ar/
• Banco Central de la República Argentina (BCRA) - Central Bank of Argentina, overseeing monetary policy and foreign exchange rules relevant to project finance. https://www.bna.com.ar/

6. Next Steps

1. Define project scope and financing plan - Outline the project, identify sponsors, and determine target debt and equity structure in writing within two weeks.
2. Engage local counsel with Paraná experience - Hire a lawyer familiar with Ley 19.550, SPV formation, and provincial permitting; arrange an initial kickoff within 2-4 weeks.
3. Prepare a preliminary term sheet - Draft core terms for equity, debt, security, and intercreditor arrangements to use as a basis for negotiation; expect 2-6 weeks of negotiation.
4. Initiate due diligence and permitting track - Begin environmental, land-use, and grid interconnection assessments in parallel with lender due diligence; anticipate 1-3 months.
5. Draft and negotiate key contracts - EPC, O&M, off-take, and supply agreements drafted to satisfy lenders' covenants; allocate risk clearly and include termination provisions.
6. Negotiate financing terms with lenders - Coordinate with local banks and international lenders to finalize debt, covenants, security packages, and currency risk strategies; expect 1-4 months.
7. Close the transaction - Complete all regulatory approvals, sign finance documents, register SPV, and fund initial capital; plan for a 2-6 week closing window after due diligence is complete.