Preserving The Economic Stability Of An Energy Project

Law360, New York (January 15, 2013, 12:39 PM EST) -- Economic stability is one of the most important issues for a sponsor to consider when investing in a project in a foreign country, especially when dealing with the governments of developing nations in industries that are politically sensitive such as the export of energy and other natural resources. The success of such an energy project will depend upon the economic basis for the investment decision continuing without significant deterioration into the future.

Sponsors are well advised to insist on a robust economic stability clause in an...
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