Best Project Finance Lawyers in Zarqa

1. About Project Finance Law in Zarqa, Hashemite Kingdom of Jordan

In Zarqa, project finance follows a structure where a special purpose vehicle (SPV) is created to own and operate a specific project. Lenders assess repayment primarily from the project’s cash flows rather than the sponsors’ balance sheets. Typical security packages include assignments of off-take agreements, pledges or mortgages on project assets, and restrictions on the SPV’s borrowings and dividends.

The Jordanian legal framework supports SPV formation and project finance activities through national statutes and regulatory authorities. Practitioners in Zarqa coordinate with local authorities for licenses, environmental clearances, land use approvals, and construction permits. Compliance with corporate, tax, and financial regulations remains essential throughout the project life cycle.

For practical guidance, local counsel in Zarqa often liaises with national regulators to interpret project specific requirements and to align procurement, EPC, and O&M contracts with Jordanian law. This helps ensure that security interests, contract governance, and dispute resolution provisions are enforceable in Jordanian courts or through recognized arbitration forums.

Jordan is increasingly formalizing its PPP and project finance processes to attract private investment into infrastructure and energy projects.

In summary, Zarqa project finance lawyers typically help with SPV formation, asset security planning, contract structuring, regulatory compliance, and dispute resolution, all tailored to Jordanian law and local realities in Zarqa Governorate. Sources: Jordan Investment Commission, Central Bank of Jordan.

2. Why You May Need a Lawyer

• You are structuring a solar or industrial project in Zarqa and need an SPV with clean ownership and governance. A lawyer helps draft the articles of association, shareholder agreements, and governance provisions to avoid later disputes.

• You must negotiate EPC and O&M contracts for a new plant in Zarqa. An attorney can tailor risk allocation, performance guarantees, and termination rights while ensuring compatibility with Jordanian contract law.

• You are arranging project level debt with local lenders or international banks. A lawyer helps with security packages, intercreditor arrangements, and debt service reserves in line with Jordanian banking regulations.

• You need to comply with regulatory approvals in Zarqa for land use, environmental permits, and grid interconnection. A solicitor coordinates licensing and regulatory submissions to avoid delays.

• You want to structure a PPP or a government-backed project. An attorney can navigate the PPP framework, tendering rules, and framework agreements to safeguard sponsor rights and ensure enforceability.

• You face a cross-border financing scenario with currency and repatriation considerations. A lawyer advises on CBJ regulations, foreign debt reporting, and cross-border tax compliance.

3. Local Laws Overview

Two to three key instruments commonly involved in Jordanian project finance, including in Zarqa, are listed below. Always verify the latest consolidated texts and official amendments in Jordan's official gazette and regulatory portals.

• Companies Law No. 22 of 1997 (as amended) - Governs formation, governance, and dissolution of Jordanian corporations and SPVs used in project finance. This law sets minimum capital, shareholder rules, and corporate responsibilities for entities created to own project assets.
• Public-Private Partnership Law and implementing regulations - Establishes the framework for government funded or conferred projects with private sector participation. It covers tender processes, award criteria, and project governance for PPP arrangements in Jordan.
• Banking and Financial Regulation under the Central Bank of Jordan - Governs lending, foreign debt, currency exchange, and prudential requirements for lenders and borrowers involved in project finance transactions.

Recent trends in this area include renewed emphasis on robust procurement processes and enhanced due diligence for PPP and project finance projects.

Jordan continues to refine its PPP framework to attract private investment while safeguarding public interests.

When working in Zarqa, counsel will align these laws with local planning and environmental requirements, as well as civil procedure rules for enforcement and dispute resolution. For reference, local practice often intersects with actions at the Jordanian courts or international arbitration venues depending on the contract clauses and the governing law chosen by the parties. Sources: Ministry of Justice, Jordan Securities Commission.

4. Frequently Asked Questions

What is project finance in Jordan?

Project finance relies on the cash flow generated by a dedicated project rather than sponsor assets for debt repayment. In Zarqa, lenders typically require a secured framework with an SPV, off-take agreements, and cross-default protections.

How do I form an SPV in Jordan?

Define project scope, draft a suitable shareholder agreement, and file with the Companies Registry for SPV formation. Local counsel ensures compliance with Companies Law and related filing requirements.

What is the typical timeline to close a project finance deal in Zarqa?

Initial term sheet and due diligence usually take 4-8 weeks. Final syndication, permissioning, and closing may take 3-6 months depending on project complexity and approvals.

How much does it cost to hire a project finance lawyer in Zarqa?

Hourly rates for local firms in Zarqa start around a few hundred Jordanian dinars per hour, with fixed-fee engagements available for due diligence and contract drafting in straightforward deals.

Do I need a local presence in Zarqa to finance a project there?

Having local counsel improves regulatory coordination, permits, and dispute handling. A local office or local partner can streamline interactions with Zarqa authorities and suppliers.

What documents are required for a project finance loan in Jordan?

Common documents include project agreements, feasibility studies, SPV constitutional documents, financial models, off-take contracts, and environmental permits.

What is the role of the Jordan Investment Commission in PPP projects?

The JIC guides investment approvals, incentives, and regulatory considerations for PPPs. It also provides information on tender processes and investment governance.

Can foreign investors participate in Zarqa project finance?

Yes, foreign participation is common in Jordan. Compliance with currency controls, foreign ownership, and repatriation rules is essential, with local counsel advising on structure and approvals.

Should I hire a local solicitor or a multinational firm for project finance in Zarqa?

A local solicitor offers regulatory fluency and ease of coordinating with Zarqa authorities. An international firm can provide cross-border expertise and project finance templates.

How long does it take to obtain licenses for a project in Zarqa?

Permitting depends on project type. Industrial or energy projects typically require 4-12 weeks for essential licenses, subject to regulatory reviews.

Is arbitration a preferred option for project disputes in Jordan?

Arbitration is common, especially for cross-border financings. Ensure arbitration clauses specify seat, rules, and governing law to avoid enforcement issues in Jordan.

What's the difference between project finance and corporate lending in Jordan?

Project finance centers on a project's cash flows and security interests, not sponsor balance sheets. Corporate lending relies primarily on sponsor credit and collateral.

5. Additional Resources

• Jordan Investment Commission (JIC) - Government agency guiding foreign investment, PPPs, and investment approvals. jic.gov.jo
• Central Bank of Jordan (CBJ) - Regulates banking, lending, foreign debt and currency controls affecting project finance transactions. cbj.gov.jo
• Jordan Securities Commission (JSC) - Oversees capital markets, securities offerings and corporate disclosures relevant to project finance bonds or notes. jsc.gov.jo

6. Next Steps

1. Define the project scope, expected milestones, and financing needs. Write down your objectives before contacting counsel.
2. Identify Zarqa-based law firms or solicitors with project finance experience in infrastructure, energy, or manufacturing sectors.
3. Gather key documents for initial review, including feasibility studies, draft contracts, and proposed SPV structure.
4. Schedule an initial consultation with a local attorney to outline the SPV, security package, and regulatory path.
5. Ask for a written engagement letter and a clear scope of work with deliverables and milestones.
6. Request a high level term sheet and a due diligence plan tailored to Zarqa regulations and the project type.
7. Agree on a project timeline, including regulatory approvals, lender commitments, and closing dates, with a realistic buffer for delays.