Importance of Local Partnering In Foreign Projects -- Are Local Partners A Necessity For American Investors?
By Mark J. Riedy, Esq. *
Many American investors in foreign projects, and particularly in infrastructure transactions, will not proceed in a foreign country without a local partner. However, on the other hand, some American investors refuse to partner with a local company for a foreign project unless mandated by local laws. Similarly, some American investors that earlier had entered into a foreign partnership later determine that they should never have done so. These divergent positions demonstrate the need for careful consideration of the local partner objectives, due diligence on the local partner and a clearly defined partnering relationship.
A. Considerations In The Decision Of Selecting A Local Partner
B. Due Diligence On A Proposed Local Partner
C. Early Partnership Documentation
D. No Local Partner Requirement
E. Relationships Gone Bad
* Mark J. Riedy is a partner in the Project Asset and Finance Department and Chairman of the South Asia Practice of Thelen, Reid & Priest LLP.
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