The challenges of infrastructure and recent trends in project finance: some remarks on the Brazilian experience
Introduction
With the loss of capability of investment by the public sector, there was a global tendency in 80’s and 90’s to diminish the role of the State, with the privatization and concession of public services to the private sector. In Brazil, The Brazilian Privatization Program – PND, was instituted under the Law No. 8,031, of 04/12/1990, when the concept of privatization became an integral part of the economic reforms initiated by the Federal Government. At that time, all effort was concentrated on the sale of productive state owned companies, tied to strategic sectors, which allowed the inclusion of steel manufacturers, petrochemical and fertilizer companies in the PND.
Between 19 [...]
Standard Form Construction Contracts – Friend or Foe?
The UAE construction sector is a continually developing market with complex transactions becoming increasingly prevalent. The evolution of the construction sector has highlighted the need for more robust construction contracts that deal with all the relevant risk issues for a project.
Presently, many companies in the UAE rely heavily on the use of standard form construction contracts (“SFCCs”) as a basis for their contractual obligations, as opposed to using bespoke construction contracts drafted for each project.
There are various types of SFCCs which have been developed by different entities in different regions. Some examples of SFCCs include the Fédération International des Ingé [...]
Lean Green Venture
First for the “Lean” – the Singapore International Arbitration Centre (SIAC) Rules 2010 came into effect on 1 July 2010.
This third edition replaces the SIAC Rules 2007 and is part of SIAC’s efforts to stay lean and effective as it keeps apace with the rapid growth of international arbitration.
Key updates include an expedited arbitration procedure for claim amounts less than S$5 m or in cases of exceptional urgency. The expedited process requires an award to be issued within six months from the tribunal being constituted and the reasons for the award may be in “summary form” under the expedited procedure.
Also new to the Rules are the inclusion of a new rule on interim and emergency r [...]
When France Goes Green
- By George Burn,
for Salans
By Gauthier Vannieuwenhuyse for Salans
Since 2002, France has been developing a well-thought-out national strategy on sustainable development that gathers the State, local representatives, eco-defending associations, private companies and civil society. In 2007, the “Grenelle de l’Environnement” project was launched in order to fight against climate changes by putting energy needs under control, protecting biodiversity and natural resources, creating a health-friendly environment, setting up sustainable production and consumption habits, and promoting ecological development strategies that foster both employment and competitiveness. It is a two-step program that, in 2009, led to the ad [...]
Brazil opens bid for a bullet train: a US$ 20 billion project
The Brazilian bullet train project
On July 13th 2010 Brazilian Federal Government launched bidding documents regarding the concession regime and procedures for implementation and operation of the High-Speed Rail (TAV – Trem de Alta Velocidade) that will connect the cities of Rio de Janeiro, São Paulo and Campinas. The project, the most ambitious infrastructure project under the country’s Program to Accelerate Growth (PAC – Programa de Aceleração do Crescimento), specifies that the construction, operation, and maintenance will be granted to the consortium that provides the lowest fare for service.
The concession contract establishes the limit of six years to complete the entire stret [...]
10 Billion Swiss Franc Project to Build World’s Longest Railway Tunnel Ahead of Schedule
By Matthias Scherer and Samuel Moss (Lalive)
An acceleration of the drilling and construction of the Gotthard Base Tunnel over the past years has left its planners faced with the unusual prospect of the project being completed a year ahead of schedule. Work on the 57 km long railway tunnel through the Swiss alps, the longest in the world, was scheduled to be completed in 2017. However, following faster than anticipated progress in the excavation and construction of the tunnel, the consortium of companies responsible for the second phase of the works, the installation of the railway infrastructure, will propose the possibility of a 2016 hand-over date.
The Gotthard Base Tunnel is part of [...]
A return to Arbitration?
Disputes in the construction industry have historically lent themselves to the utilisation of alternative dispute resolution (ADR) processes. During the boom times of the late nineties and early noughties, parties to construction contracts focussed less on hard dollar contracts and strict legal claims, and more on relationship based contracting and dispute avoidance, such that reliance on more formal ADR fell away.
With the return of more difficult times, ADR has again come under the spotlight. It seems widely accepted that arbitration in the domestic arena in Australia has become largely undistinguishable, in terms of time and money spent resolving disputes, from litigation.
Meanwhile [...]