Development Joint Ventures
Joint ventures are a common form of cooperation for large energy and infrastructure projects. They are used to amalgamate specific know-how and skills as well as to share the development risks, costs, and successes.
Our advice is focused on ensuring a clear delineation of the respective competencies and contributions. The substantive provisions of joint venture agreements set out clear rules as to the contributions of the individual partners, information and coordination duties, the establishment of management and supervisory structures, the resolution of deadlocks, and exit and termination provisions.
In addition to the establishment of numerous development joint ventures, we have also derived invaluable experience from the provision of ongoing support to operational joint ventures. This has allowed us in any given context to understand the parameters most likely to promote a successful cooperation and to anticipate and address at an early stage the possible emergence of points of conflict.
In addition to the usual risk allocation, corporate and tax issues, joint ventures can also involve questions of public procurement law. We support our clients in finding the optimal joint venture structure to best promote the success of the project.
Our team has advised:
- on the negotiation of a joint venture agreement for the development of offshore wind farms;
- a US financial investor on the acquisition of shares and formation of a joint venture for the development of biogas plants;
- a German corporation on the structure and design of a joint venture to build a waste incinerator; and
- on the termination of a joint venture after implementation and completion of an infrastructure project; and
- on the exercise of preemption rights relating to the sale of a participating interest in a North Caspian joint operating arrangement.