International Construction Law Review


Pedro Lacasa*

Attorney, BKM/Berkemeyer Law Firm
Abstract: the international construction industry is very familiar with the role of sovereign guarantees in obtaining financing for infrastructure projects, especially in projects which use the Project Finance methodology. The legal interpretation of such sovereign guarantees has been inconsistent from the courts of one country to another. But what are sovereign guarantees and what role do they play in the construction sector? Notwithstanding this, Public-Private Partnerships (PPPs) may contain a legal framework that secures the payments agreed within the project without recourse to sovereign guarantees. Paraguayan Law is a good example.


Construction is a public policy. Public infrastructure demands suitable legislation and foreseeable judicial precedents, even though construction law may only be an aspect of the general contract law.1 The main character of Infrastructure Law is its double structure. The private and public areas converge in the legal nature of public infrastructure and that is one of the key elements that differentiates Infrastructure Law from classic public procurement law2 which is predominantly governed by public law.
Even though Infrastructure Law is also governed by a public-law regime, it is complemented (and on some occasions even co-governed) by private-law rules.3
The size and complexity of major international construction projects nowadays demands a cooperation between many entities to enable the risks and skills to be shared.4

Pt 2] Project Finance in Paraguay


The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, click Log In button.

Copyright © 2024 Maritime Insights & Intelligence Limited. Maritime Insights & Intelligence Limited is registered in England and Wales with company number 13831625 and address 5th Floor, 10 St Bride Street, London, EC4A 4AD, United Kingdom. Lloyd's List Intelligence is a trading name of Maritime Insights & Intelligence Limited.

Lloyd's is the registered trademark of the Society Incorporated by the Lloyd's Act 1871 by the name of Lloyd's.