2.2.3  Creation of limited liability project company

Project financing relies on the limited liability nature of project vehicles to achieve limited recourse financing, and subject to the ability of courts to look through the limited liability nature of the entity, for example through piercing the corporate veil.6




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6  See Delmon, Private Sector Investment in infrastructure: Project finance, PPP projects and risk 2ed (Kluwer International 2009) for further discussion of limited recourse structures.