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When Contractors Become Project Owners: Opportunities, Risks and Conflicts for Japanese Contractors to Consider When Taking Equity in a Project

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Japanese heavy-industries companies that typically act as contractors or suppliers on projects are increasingly invited to contribute as equity investors in the projects they construct or supply major equipment to, thereby taking a role as a project sponsor while also performing their role as ‘Contractor’ in the supply chain.

As illustrated in this article, written by Angus Rankin, Jess Webster and Sophie Freelove, taking equity in a project company requires careful consideration of a number of factors that can be complicated, and may be unfamiliar to many Japanese contractors. However, there is likely to be a competitive advantage for those companies willing to take the risk, and it may increasingly become a requirement in projects requiring novel technologies and game-changing infrastructure projects, in which Japanese companies already excel.


This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.

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