INTRODUCTION

The local law of the host country of a project is an integral part of project feasibility. Local lawyers are, of course, an excellent source of this information. In addition, summaries and overviews are available from publicly available information sources and libraries.

LOCAL LAWYERS

Need and Timing

Identification and selection of local lawyers for a project financing is important to the success of a project. An understanding of the local law during the structuring of the project and the importance of an understanding of these laws during negotiation with the host government and local participants require that local lawyers be interviewed and retained as early as possible in project development.

In a country with a small number of competent law firms, competition among the various project participants for these firms is often intense. This requires that the local firm be retained very early in the project development process.

Identifying Competent Lawyers

Identification of potential local law firms is often made by referrals from large law firms. This is an increasingly effective source of information as large law firms in industrialized countries have developed international capabilities and established local offices in foreign countries, merged with foreign law firms, or established correspondent arrangements or other informal alliances.