CEU Electronic Theses and Dissertations, 2013
| Author | Kubassek, Tamás |
|---|---|
| Title | SECURING PERFORMANCE IN PROJECT FINANCE: IS THE PLEDGE OF CEIVABLES ENOUGH FOR CREDITORS AS A MAIN SECURITY INTEREST TO SECURE THEIR CLAIMS? |
| Summary | The aim of this paper is to address the issue of change of fee-in tariffs in project finance transactions on the field of electricity production from renewable energy sources. The thesis discusses through this example that despite the complex state-of-the-art nature of project finance, certain risks cannot be entirely anticipated and passed on to other parties. After discussing the main notions of project finance deals which are necessary to understand the mechanism of a project finance transaction, the thesis specifically covers the issue of security interests in project finance. Finally, the thesis deals with the particularities of support schemes and the problems which can arise when the hosting government amends the law to decrease the feed-in tariffs. Such decrease may substantially threaten the repayment of loans as it directly affect the revenue making capabilities of the project company. The thesis supports the position that l established security interests cannot provide the lenders enough protection against the risk non-repayment in this case. Therefore lenders must usually seek additional ways for more comfort, such alternatives may include implementation agreement with the hosting government, insurances and guarantees, the involvement of international community and comfort letters. However, the actual effectiveness of these supplemental devices against host governments legislative acts is still uncertain. |
| Supervisor | Tajti, Tibor |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2013/kubassek_tamas.pdf |
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