Project finance

Project finance constitutes one of the principal models available for the implementation of investment projects. Project risks are transferred to a project company (SPV) that is founded by investors (sponsors) to carry out the project. In a standard model, except for an injection of equity, sponsors are not liable for the liabilities of the project company. Debt financing and equity are being repaid from cash-flows generated by the project. Repayments usually start from the completion of the construction phase.

Project finance is predominately used in Poland for the renewable energy projects and large energy projects. In addition, financing of the PPP projects is based on the project finance model.

In respect of the project finance model, our lawyers have vast experience as in-house banking counsel as well as external legal advisors acting for financial institutions, sponsors and project companies. Selected projects carried out in Poland in relation to which our lawyers have advised include:

• construction and maintenance of a gas-fired power plant in Stalowa Wola
• construction and maintenance and subsequent financial restructuring of a biofuel plant in Goświnowice
• construction and maintenance of a section of A2 motorway between Nowy Tomyśl and Świecko
• construction and maintenance of numerous wind farms
• construction and maintenance of biogas facilities