Project Finance NewsWire

October 2005

IN THIS ISSUE

Financing Pollution Control

Any power company planning to install new pollution control equipment should consider whether it is possible to get the US government to pay part of the cost...

Biodiesel Roundtable

Chadbourne hosted a discussion in New York on September 28 on the growing interest in biodiesel projects in the United States...

"Pivot Points" in the New Energy Bill

Chadbourne hosted roundtable discussions in New York on August 24 and in Houston on September 14 about the massive new 1,724-page energy bill that President Bush signed into law on August 8.

Are Subsidiaries Really Bankruptcy Remote?

A US appeals court decision in August is a reminder to lenders that there is a danger that even a “bankruptcy-remote” borrower can have its assets swept up in a bankruptcy proceeding involving a p...

Toll Road Update - NAFTA Traffic

The federal highway bill signed by President Bush in August earmarks US$833 million for projects within 100 miles of the US borders with Mexico and Canada.

Environmental update

Nine northeastern and mid-Atlantic states released an outline in late August of a regional “cap-and-trade” program to reduce carbon dioxide, or CO2, emissions from power plants.


IN OTHER NEWS

Canada

Canada has stopped issuing tax rulings for Canadian income trusts and other flow-through entities...

A Novel Theory

A novel theory for reducing pollution cleanup costs failed in a US court. Reynolds Metals Co. had to spend $110 million to help clean up a US “Superfund” site...

Holland

HOLLAND unveiled a new budget in September that cuts the corporate tax rate to 29.6% from the current 30.5%.

India

INDIA ordered an Indian company to withhold income taxes from payments to a foreign consultant.

France

France is considering an “exceptional tax” on oil company profits if oil companies refuse to reduce prices, the French finance minister said in September...

Securitization Transactions

Securitization transactions by utilities are okay in some circumstances, the IRS said, but the agency said it will not rule on others...

Foreign Tax Credits

FOREIGN TAX CREDITS cannot be claimed in the United States for taxes that a US company pays voluntarily to another country.

Foreign Dividends

Foreign Dividends were a problem for Amerada Hess Corp. when paying state income taxes in North Dakota...

Minor memos

MINOR MEMOS. Another company got back the federal excise taxes that were included on its phone bill for long-distance calls.