The EPC contract(s) and any other key contracts governed by the law of a different jurisdiction | LegaMart

Post Detail

QuestionOct 5, 2020 - 14:16

The EPC contract(s) and any other key contracts governed by the law of a different jurisdiction

If we sign an EPC contract, can that be assignable to lenders under Iranian law?

0
2

John Howard

Oct 5, 2020 - 14:31

Basically, any construction contract which is concluded under Iran government standard terms could be assigned from the employer to the third party especially if there is a specific term in the contract that permits this transfer.

0

John Howard

Oct 6, 2020 - 12:34

It needs more considerations if the assignment of the contract, for any reason, is as a transfer of the Foreign Capital to the foreign investor (in whole or a part) which had been declared to organization for investment Economic and technical assistance of Iran (OIETI). According to the Article 10 of Iranian Foreign Investment Promotion and Protection Act (FIPPA), it is necessary to apply for the approval of the Board and the Confirmation by the Minister of Economic Affairs and Finance if the assignee wants to get benefit from Iran FIPPA protections. Otherwise, the assignment is legally correct, but the assignee would lose the specific rights the main party already has obtained under FIPPA. In the case of assignment to another Foreign Investor, the assignee who shall have, at least, the same qualifications as the initial investor, could replace and/or become a partner to the former Investor from the standpoint of FIPPA.

0

Answer This Post

Login into your account and answer this post

Group chat