Vincent Connor

The number of global mega projects, such as HS2 in the UK, is set to increase - with scale and stimulus measures likely to be driven by China.

Infrastructure sector specialists at Pinsent Masons say that the guide – Joint Ventures: Delivering Global Mega Infrastructure Projects - will help JVs deliver more consistently, more efficiently and more sustainably than ever before.

Research shows that 8% of global GDP is spent on global mega projects.

Vincent Connor, partner and head of Pinsent Masons’ Hong Kong office, said: “The stability of the world’s economy relies on enhanced infrastructure; which is increasingly being delivered by JVs.

“However, JVs in the infrastructure sector are more-often-than-not formed due to the capacity to deliver projects, rather than the best capability to do so. The capability of businesses to deliver these projects is increasingly under pressure due to their increased scale, complexity and the integration of technology.

“Often, there is less consideration of the inherent conflicts within JVs or the opportunities arising from getting the JV better structured, more efficiently engaged and better incentivised.”

At a time when global mega infrastructure projects are consistently costing more and taking longer to deliver than initially approved, this first-of-its-kind resource outlines best practice for JVs and gives parties the tools to develop successful structures; plan their tax and shareholder arrangements; consider regulatory issues across jurisdictions such as competition law and financial crime; build partnerships for success through leadership and cultural considerations; and to plan sensibly for the worst case, by addressing termination provisions and how best to handle disputes between JV partners.

The guide has been developed following extensive engagement with stakeholders across the firm’s global infrastructure network including clients and industry bodies.

Research confirmed that there was a desperate need for such a resource and a universal willingness to learn and put its principles into practice. Many of those stakeholders have contributed to the guide and their advice and commentary has been included within it.