Lexpert®Ranked Lawyers
Borduas, Robert G.
Norton Rose Fulbright
Canada LLP
(514) 847-4524
robert.borduas@
nortonrosefulbright.
com
Mr. Borduas's project
and debt fi nance
practice embraces
infrastructure and
PPPs. He represented
the lenders on the A30
Highway project and
the McGill University
Health Centre
among others.
Brown, Darryl J.
Gowling Lafl eur
Henderson LLP
(416) 369-4581
darryl.brown@
gowlings.com
Mr. Brown's
practice focuses on
infrastructure, P3 and
construction law. He
drafts and negotiates
project agreements,
construction contracts,
operating agreements
and other contracts,
and regularly
represents sponsors,
operators and
design builders.
Bugden, Lydia
Stewart McKelvey
(902) 420-3372
lbugden@
stewartmckelvey.com
Ms. Bugden's
experience embraces
project fi nancing,
land assembly and
regulatory matters on
energy projects; M&A,
fi nancing, restructuring
and governance for
corporations; and bi-
lateral and syndicated
credit facilities for
banking clients.
Borsook, Lisa A.
WeirFoulds LLP
(416) 947-5003
lborsook@
weirfoulds.com
Ms. Borsook acts
for corporations and
governments regarding
their retail, industrial
and office property
needs. A leader in
property development
and leasing, she is
widely regarded as an
expert in her fi eld.
Brown, Linda G.
McCarthy Tétrault LLP
(604) 643-7191
lbrown@mccarthy.ca
Ms. Brown focuses
on projects and
infrastructure, and
regularly advises
project proponents and
lenders on all aspects
of the development and
fi nancing of projects
across Canada.
Bursey, David W.
Bull, Housser &
Tupper LLP
(604) 641-4969
dwb@bht.com
Mr. Bursey's regulatory
practice focuses on
energy, environmental
assessment, water
resource management
and First Nations law.
He advises natural
resource industry
clients, First Nations
and government
agencies.
Finance | 9
intended to limit competi-
tors and give the original
investor a say on where the
equity goes," says Nordick.
A construction company,
for example, will want to ex-
clude rival construction com-
panies. But it doesn't take out
so many major players as to
distort the market, he says.
"Ultimately, economics de-
termines what goes on."
Some types of infrastruc-
ture are inherently more at-
tractive than others in the
secondary market. When
uncertainty exists as to how
much traffi c will utilize a
toll road, bridge or rail line,
then the value and the risk
for the balance of the term may worry potential institu-
tional investors.
e cash fl ow is not as predictable as, say, a hospital: if all
the beds are open and ready for use, a steady income stream is
assured. at's much more appealing to a long-term investor
such as a pension fund.
Similarly, institutional investors would be eager for the eq-
uity in an electrical power plant if it had a long-term power
purchase contract that was not tied to demand.
In recent years, the global secondary market for P3
equity has seen the establishment of a number of infra-
structure funds in tax-avoidance jurisdictions, with stakes
being sold from there to
investors worldwide.
Bilfi nger Berger trans-
ferred its P3 equity to Bil-
fi nger Berger Global Invest-
ments, incorporated in the
tax haven of Luxembourg.
e new entity acquired eq-
uity and debt for the Kelow-
na Vernon Hospital P3 proj-
ect and equity and debt for
Alberta's North East Stoney
Trail highway P3 in Calgary.
Provinces take into ac-
count the taxes paid by the
private P3 partner when
deciding whether or not
the P3 method of project
development is the best
approach. ose taxes are
considered one of the benefi ts of P3s, but it's unclear what
happens if the project's ownership is moved to a tax haven
and the taxes paid decline drastically.
THE DEBT MARKET
Lenders, unlike equity investors, are not subject to a reten-
tion period in the project agreement. During the European
debt crisis, for example, several European banks transferred
their loans to other creditors, sometimes early in their term
and at a sharp discount.
However, if the debt is being refi nanced – not just reas-
signed among lenders – the creditor needs the consent of the
PHOTO: SHUTTERSTOCK
