International law firm Pinsent Masons has launched a resource to help the infrastructure sector deliver global infrastructure projects through joint ventures (JVs).
The firm believes the number of "mega projects", such as HS2 in the UK, is set to increase, with scale and stimulus measures likely to be driven by China, and research shows that 8% of global GDP is spent on mega projects.
With projects consistently costing more and taking longer to deliver than initially approved, the resource outlines best practice for JVs. It covers developing successful structures, planning tax and shareholder arrangements, regulatory issues across jurisdictions such as competition law and financial crime, leadership and cultural considerations, and planning sensibly for the worst case by addressing termination provisions and how best to handle disputes.
It comes in response to calls for such a resource from clients and industry bodies, and has been developed following extensive engagement.
Pinsent Masons partner Vincent Connor commented: "The stability of the world's economy relies on enhanced infrastructure, which is increasingly being delivered by JVs. However, JVs in the infrastructure sector are more often than not formed due to the capacity to deliver projects, rather than the best capability to do so.
"The capability of businesses to deliver these projects is increasingly under pressure due to their increased scale, complexity and the integration of technology. Often, there is less consideration of the inherent conflicts within JVs or the opportunities arising from getting the JV better structured, more efficiently engaged and better incentivised."