Although each project has unique characteristics, which may vary depending on such matters as the host jurisdiction and sector,there are legal issues and risks that are common to most projects. The process of assessing those risks and determining whether and how they can be mitigated is central to structuring a successful transaction that will be sufficiently robust to withstand the economic, technical, political, and legal challenges that are likely to arise over the frequently long-term tenor of the project’s debt.This chapter identifies the broad categories of risks that must be considered, and outlines a methodology for doing so. The chapter also introduces a discussion of the unique features of project finance credit and security documents, and of the process required to close complex transactions.
