13 Project Finance in Civil Law Jurisdictions

Subject(s):

Lending and credit — Guarantees and security — Capital markets

Until recently, project financing of public infrastructure projects in France, as in other civil law jurisdictions, was limited to concessions. This evolved in the early 2000s with the emergence of partnership agreements between public authorities and sponsors. Nowadays, project financing of public infrastructure projects is structured around two distinct contractual frameworks: concessions and public-private partnerships. The two main differences between public-private partnerships and concessions lie in (i) the way the project is designed and (ii) the remuneration of the private company. This chapter discusses public projects and tender offers, creating and perfecting security interests, daily assignment and pledges over business concerns, direct agreements and step-in rights, issues arising from secured lending, and the influence of the civil code in African countries.