Contributed By Winston & Strawn London LLP
The relevant government approvals, licences and statutory controls required for a project will depend on the nature of each project. For example, as described below in 8.8 Environmental , Health and Safety Laws, many commercial and industrial activities in the UK require a permit governed by the Environmental Permitting (England and Wales) Regulations 2010 (as amended). Furthermore, Project Companies involved in the generation, supply, transmission or distribution of electricity; or the supply, shipping, distribution or transmission of gas onshore in the UK; or the operation of an interconnector; require a licence from the Office of Gas and Electricity Markets (Ofgem).
The tax regime governing project finance transactions is generally the same as for other commercial loan transactions as set out above in Section4 Tax. In addition, there are a number of tax incentives in the UK to attract investments in energy and infrastructure projects, such as those under the Energy Act 2013 for low-carbon generation and enhanced capital allowance for specific energy-saving plants and machinery.
The transaction documents do not need to be registered or filed with a government body, with the exception of any document creating a security interest. To be enforceable, any such security documents must be registered with Companies House in exchange for a minimal fee, in addition to being registered at the Land Registry.
The governing law of transaction documents for projects in the UK will generally be the laws of England and Wales. However, depending on the location of the project, Scots law or the laws of Northern Ireland may govern some project documents.