Parth Rathore, OP Jindal Global University
ABSTRACT
Project Finance basically means financing long term industrial projects, public services and infrastructure projects. It uses a limited recourse or a non-recourse financial structure. The one thing that makes project finance different is that cash flow which is generated by the project is used to pay back the equity and debt that was used to finance the project. It is basically a loan structure which mainly depends on the cash-flows of the project for repayment. Firstly, this paper will investigate whether project finance lenders can bring claims under investment treaties and try to understand what a project finance structure is. Secondly, the paper will analyze Portigon AG vs. Kingdom of Spain which is a landmark judgement with regards to the rights of project finance lenders. Though this decision has not been published yet but this paper will try to dissect as to what may have been the reasons for the tribunal to come to this decision. The paper will also talk briefly about what investor-state arbitration is and how it works. Lastly, it will focus on the future of project finance lenders and things they should keep in mind if they want to avail protection under investment treaties.
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