Best Project Finance Lawyers in Syria

About Project Finance Law in Syria

Project finance in Syria refers to the structured financing of infrastructure and industrial projects, where repayment is primarily sourced from the revenues generated by the project itself. Common sectors for project finance include energy, transportation, water, telecommunications, and public infrastructure. Syrian project finance arrangements often involve long-term contracts, multiple stakeholders such as developers, lenders, government agencies, and off-takers, as well as risk-sharing mechanisms. While the industry is subject to various economic and political challenges, the Syrian government has expressed interest in encouraging private sector participation and foreign investment to support national reconstruction and development.

Why You May Need a Lawyer

Navigating project finance in Syria is complex, involving intricate legal structures, regulatory requirements, and significant financial commitments. You may need a lawyer in the following situations:

• Drafting or negotiating project finance agreements
• Ensuring compliance with Syrian laws and international standards
• Assessing risk allocation among project participants
• Securing necessary licenses, approvals, and permits
• Structuring collateral and security interests
• Facilitating foreign investment and currency exchange
• Addressing disputes or potential breaches of contract
• Advising on government incentives or public-private partnership (PPP) arrangements

In all these scenarios, involving a specialized lawyer early can help prevent legal complications and ensure that your project moves forward smoothly.

Local Laws Overview

Syrian project finance activities are governed mainly by general commercial and investment laws, as well as sector-specific regulations. Some key aspects include:

• Foreign Investment Law: Provides incentives and protections for foreign investors, including rights to repatriate profits and protection against expropriation.
• Public Private Partnership (PPP) Law: Regulates the partnership between public entities and private investors for major infrastructure and utility projects.
• Commercial Companies Law: Lays out the framework for the establishment, operation, and governance of project entities.
• Securities and Collateral: Outlines the means by which lenders can secure interests against loans, including mortgages, pledges, and guarantees.
• Banking and Currency Regulations: Affect how loans are issued, currency is exchanged, and foreign transactions are approved.
• Environmental and Land Use Laws: Require compliance with environmental standards and regulations relevant to project location and sector.

Due to the evolving legal environment and ongoing reconstruction efforts in Syria, keeping current with the latest regulations and procedures is crucial for all stakeholders in a project finance transaction.

Frequently Asked Questions

What is project finance, and how does it differ from corporate finance?

Project finance is a method of funding where repayment comes from the cash flow generated by the project itself, rather than from the general assets of a company. In contrast, corporate finance relies on the overall creditworthiness and balance sheet of the sponsoring company.

Can foreign investors participate in project finance transactions in Syria?

Yes, foreign investors can participate in project finance, often through joint ventures or partnerships. There are special provisions and incentives under the Foreign Investment Law, but compliance with licensing and currency regulations is necessary.

Are public-private partnerships allowed in Syria?

Yes, Syria allows and encourages public-private partnerships, especially in infrastructure, energy, and utility projects. The PPP Law outlines the rules, procedures, and incentives for such collaborations.

What guarantees or securities can be offered to lenders?

Typical security arrangements include mortgages over land, pledges of assets, assignment of project revenues, and corporate or government guarantees, depending on the structure and stakeholders of the project.

How are disputes in project finance transactions resolved?

Disputes are generally resolved through arbitration or Syrian courts, based on the terms agreed upon in the project documents. International investors often prefer arbitration clauses for neutrality and enforceability.

What are the common risks involved in project finance in Syria?

Major risks include political and regulatory changes, foreign exchange restrictions, security concerns, operational delays, and challenges in enforcing contracts or securities.

Are there restrictions on the repatriation of profits for foreign investors?

The Foreign Investment Law allows for the repatriation of profits and capital under certain conditions and upon obtaining approvals from the Central Bank of Syria.

What environmental regulations should be considered?

Projects must comply with national environmental impact assessment requirements, pollution standards, and sector-specific environmental laws applicable to their activities.

Are government guarantees available for project finance?

In some cases, particularly for strategic or public interest projects, the Syrian government may provide guarantees or support undertakings to attract private and foreign investment.

How long does it take to set up a project finance structure in Syria?

The timeline varies by sector and complexity but can range from several months to over a year, depending on licensing, land acquisition, environmental permitting, and negotiations among stakeholders.

Additional Resources

For more information or assistance in project finance in Syria, the following resources are helpful:

• Ministry of Economy and Foreign Trade - handles investment licensing and incentives
• Syrian Investment Agency - supports foreign and local investment projects
• Central Bank of Syria - regulates banking, currency controls, and foreign exchange matters
• Ministry of Finance - oversees public-private partnerships and taxation issues
• Syrian Arab Lawyers Association - provides lawyer listings and legal support
• Sectoral ministries (Energy, Transport, Water Resources) - issue sector-specific permits and guidance

Next Steps

If you are considering participating in a project finance venture or need legal guidance for an ongoing project in Syria, here are clear steps to proceed:

• Clearly define your project objectives and identify all stakeholders involved
• Consult with a specialized project finance lawyer familiar with the Syrian legal environment
• Gather all relevant documentation, including feasibility studies, business plans, and draft agreements
• Assess the legal and regulatory requirements for your specific sector and project type
• Engage with regulatory authorities early in the process to understand permit and licensing needs
• Ensure financing structures and collateral arrangements are robust and legally compliant
• Negotiate clear contracts, identifying risk allocation and dispute resolution mechanisms
• Stay informed about changes in Syrian laws and international best practices

Professional legal advice is an investment that can save significant time and resources by preventing costly mistakes. Taking these steps early can help ensure your project is legally sound and set up for long-term success.