Best Project Finance Lawyers in Tashkent

About Project Finance Law in Tashkent, Uzbekistan

Project finance refers to funding large, capital-intensive projects using the project's own cash flows and assets as collateral. In Tashkent, Uzbekistan, project finance is increasingly used for infrastructure, energy, transport, and industrial projects. The legal framework for project finance involves a combination of civil, banking, contract, tax, and regulatory laws. These laws define how projects are structured, how risks are allocated, and how lenders are protected.

As Uzbekistan encourages foreign investment and public-private partnerships, the demand for project finance and relevant legal expertise has surged. Tashkent, being the nation’s economic center, is at the heart of such financial transactions, making an understanding of the local legal environment essential for successful project finance deals.

Why You May Need a Lawyer

Project finance transactions are complex and involve multiple parties, such as sponsors, lenders, contractors, and government entities. Here are some common situations where legal advice is crucial:

• Structuring the project and choosing the best legal form for the special purpose vehicle (SPV)
• Negotiating and drafting loan, security, and shareholder agreements
• Ensuring compliance with local laws, sector-specific regulations, and licensing requirements
• Managing risks related to currency, tax, and international investment protections
• Obtaining government permits and approvals
• Resolving contractual disputes during the construction or operation phase
• Advising on environmental, labor, and land issues
• Assisting with cross-border elements of financing and collateral

A lawyer with experience in project finance in Tashkent can help navigate these complex areas, ensuring your project is secure and compliant.

Local Laws Overview

Project finance in Tashkent is governed by several key local laws and regulations:

• Civil Code of Uzbekistan: Outlines the general principles of contracts, obligations, and collateral arrangements.
• Law on Public-Private Partnership: Sets out the framework for PPP projects, including risk allocation and government support.
• Banking Law and Regulations: Regulate the roles of banks and financial institutions involved in financing projects.
• Foreign Investment Law: Protects the rights of foreign investors and provides for guarantees against expropriation and discriminatory measures.
• Tax Code: Determines the tax implications of project structures and possible incentives for investors.
• Sector-Specific Laws: Such as those for energy, mining, and transport, often set additional requirements and standards for project finance deals.
• Security and Collateral Laws: Allow for the creation and registration of security interests over assets, rights, and receivables.

Local law can impact all aspects of project finance, from structuring to enforcement of lender rights, highlighting the need for legal guidance.

Frequently Asked Questions

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

Project finance is a method of funding in which the project's assets and cash flows, not the sponsor's balance sheet, secure the financing. Traditional corporate financing relies on the overall assets and creditworthiness of a company.

Can foreign investors participate in project finance deals in Tashkent?

Yes, foreign investors can participate and enjoy protections under the Foreign Investment Law, including repatriation of profits and guarantees against expropriation.

What is a Special Purpose Vehicle (SPV), and why is it used in project finance?

An SPV is a legal entity created solely for the purpose of a specific project. It isolates the project's risks from the sponsors and facilitates financing and operation.

Are there restrictions on foreign banks or lenders providing project finance in Uzbekistan?

Foreign banks can participate in project financing, but may need to comply with licensing, registration, and reporting requirements set by Uzbekistan’s central bank and financial regulators.

What typical security or collateral can be offered to lenders in project finance projects?

Lenders may take security over land, buildings, equipment, receivables, shares in the SPV, and project contracts. Security interests must be properly registered to be enforceable.

How are disputes in project finance typically resolved in Uzbekistan?

Disputes may be resolved in Uzbek courts or, if agreed by the parties, through international arbitration. The choice often depends on the parties involved and project contracts.

Are there any governmental approvals required for large project finance transactions?

Yes, most large projects, especially involving foreign investment or strategic sectors, require approvals from relevant ministries and regulatory authorities.

What incentives or benefits does Uzbekistan offer for project finance in priority sectors?

The government offers tax holidays, customs exemptions, and other incentives for investors participating in projects in energy, infrastructure, and other key sectors.

What are the risks associated with project finance in Tashkent, and how can they be managed?

Risks include changes in law, currency risks, political risks, and construction delays. Risks are managed through contractual arrangements, insurance, and sometimes government guarantees.

How long does a typical project finance transaction take to close in Tashkent?

The timeline varies, but due diligence, negotiation, and approvals can take several months to over a year, depending on the project's size and complexity.

Additional Resources

If you need more information or support regarding project finance in Uzbekistan, the following resources may be helpful:

• Ministry of Investments, Industry, and Trade of the Republic of Uzbekistan
• Ministry of Finance of the Republic of Uzbekistan
• Agency for Public-Private Partnership of Uzbekistan
• Central Bank of Uzbekistan
• Chamber of Commerce and Industry of Uzbekistan
• Uzbekistan Bar Association (for finding qualified lawyers)
• International Finance Corporation (IFC) - Central Asia Office

Many legal and financial advisory firms in Tashkent also publish newsletters and guides on sector developments and legal changes affecting project finance.

Next Steps

If you are considering a project finance transaction in Tashkent, Uzbekistan, it is recommended to take the following steps:

• Identify experienced legal counsel specializing in project finance and Uzbek law.
• Prepare a clear outline of your project, objectives, and potential partners or lenders.
• Request an initial consultation to assess legal requirements, risks, and transaction structure.
• Work closely with your legal and financial advisors to navigate approvals, draft documents, and comply with local regulations.
• Monitor ongoing changes in local laws and sector-specific policies that may affect your project.

Early legal advice can help anticipate challenges, structure your project optimally, and ensure your investment is protected. Do not hesitate to reach out to professional legal advisors in Tashkent with proven experience in project finance.