IN THIS ISSUE

Governments Start To Address Legal Issues Raised By E-Trading

The United States has started to address the legal issues raised by trading in electricity, gas and other products over the Internet...

Tax strategies for restructuring power purchase agreements

Many US electric utilities are in talks to buy out or restructure contracts that commit the utilities to purchase electricity from independent power projects...

Utilities Keep Tax Benefits In Asset Divestitures

The Internal Revenue Service said in a private letter ruling recently that utilities must be allowed to retain balances in certain tax accounts kept for regulatory purposes when they divest themselves of assets

France Takes First Steps To Open Electricity Market

France took modest steps last month to open its electricity market to competition...

Turkish Arbitration Issue Resolved

The Turkish parliament passed implementing legislation at the end of January that allows international arbitration in most contracts for public services...

Peru Launches Ambitious Plan To Privatize Assets

Peru’s privatization program for this year is underway and it includes some high-profile concessions, most notably the Camisea gas project, Lima’s international airport and possibly the Callao sea...

IRS Moves Against “Tax Products”

Corporations will be required to attach forms to their US tax returns disclosing details about transactions that the US authorities will probably want to examine on audit under new rules issued by...

US Adopts Market Rates For Gas Transportation Over Interstate Pipelines

The Federal Energy Regulatory Commission last month ordered regulated interstate gas pipelines in the United States to be more flexible in the services they provide and authorized market rates to ...

Creating An Effective Security Package Using Commercial Insurance In International Projects

A key feature of infrastructure project finance is the allocation of risks among the numerous parties involved...

IN OTHER NEWS

The budget that President Clinton sent Congress in February has many provisions that would affect the project finance community | Norton Rose Fulbright

The budget that President Clinton sent Congress in February has many provisions that would affect the project finance community...

Bulgaria

Bulgaria reduced its corporate tax rate by 2% effective January 1.

Power Plants Mounted on Barges

Power plants mounted on barges probably do not qualify for faster depreciation as “vessels,” the IRS suggested.

Interties at merchant plants will receive more study from the IRS | Norton Rose Fulbright

Interties at merchant plants will receive more study from the IRS...

FSCs are an illegal export subsidy, the World Trade Organization said again | Norton Rose Fulbright

Foreign sales corporations are an illegal export subsidy, the World Trade Organization said again on February 24...

Dutch finance subsidiary denied benefits under the US-Dutch tax treaty | Norton Rose Fulbright

A Dutch finance subsidiary was denied benefits under the US-Dutch tax treaty...

Two interest double-dip structrures under fire | Norton Rose Fulbright

TWO INTEREST DOUBLE-DIP STRUCTURES came under fire...

Efforts to escape arbitration for a dispute in the Dominican Republic failed | Norton Rose Fulbright

Efforts to escape arbitration for a dispute in the Dominican Republic failed...

China

China is expected to drop special tax incentives for foreign investment when it is admitted into the World Trade Organization.

Florida

Florida is debating whether to drop a tax on debt instruments and other intangibles.

France expected to impose a carbon tax on industrial energy users in 2001 | Norton Rose Fulbright

France is expected to impose a carbon tax on industrial energy users in 2001. The Jospin government released an action plan in mid-January of 96 measures to reduce greenhouse gas emissions...

Telephone pole removal costs can be deducted immediately even though they will be replaced| Norton Rose Fulbright

Telephone pole removal costs can be deducted immediately even though the poles will be replaced, the IRS said in February...

Government takeovers of private water companies would be made more difficult under a bill that Rep. Crane introduced | Norton Rose Fulbright

Government takeovers of private water companies would be made more difficult under a bill that Rep. Phil Crane (R.-Ill.) introduced in Congress...

US Treasury expected to report to Congress on whether recent technological advances require shortening depreciation periods | Norton Rose Fulbright

BRIEFLY NOTED:  The US Treasury is expected to report to Congress around March 31 on whether recent technological advances require shortening any depreciation periods...