Dino Barajas Quoted by Power Finance International on Latin American Energy Markets
Akin Gump global project finance partner Dino Barajas discussed several topics with Project Finance International in its article “Firms hire for evolving markets” regarding the rise of Latin American energy markets in 2014.
Barajas noted that for the year 2014, “Mexico has been the big story, everyone and their mother doing work in Latin America has turned their cross-hairs to Mexico.” He added that as large companies broadened their presence across sectors last year, there was an increase in energy reform activity including in power and oil and gas spaces as well as in other infrastructure projects.
In regard to the issues financiers have faced trying to secure the land rights for projects, Barajas said, “If these problems aren’t addressed in [pipeline and transmission deals], you could end up with a hold-out issue, which will affect a deal from a cost and timing point of view.” He added that a trend gaining prevalence is ironing out paperwork with off-takers on power projects and potential concerns associated with cross-border deals.
Barajas also stressed the importance of law firms turning their focus to Latin America, saying, “LatAm is becoming a must-have practice area for firms. Where you have seen international firms look to Europe and Asia for expansion, with pressures such as revenue generation, you have to go where your clients are. A LatAm practice is now more valuable to a firm.”