|
 Countertrade
is often viewed as an excellent mechanism to gain entry into new
markets. The party receiving the goods may become a new distributor,
opening up new international marketing channels and ultimately expanding
the market. Also, countries are increasingly returning to the notion
of bilateralism as a way of reducing trade imbalances.
These are exciting times for Asia with major infrastructure,
telecommunications and defense projects continually being undertaken.
The Countertrade and Cross Border Transactions Practice is highly
specialized and headed by our consultant David Hew.
This highly specialized practice involves:
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Counter purchase - Delinks the contract performance
timing so that
one transaction can go forward even though the
second transaction
requires more time. |
| • |
Buy-back - One party agrees to provide equipment
or technology
that enables the other party to produce goods
which are used to pay for
supplied equipment. |
| • |
Production sharing - Similar to buyback, but
used in mining and energy projects where the developer is paid
out of a share of the production of the mine or well. |
| • |
Offsets - These arrangements are frequently found
in the defense-related sector and in the sales of large-scale,
high-priced items such as aircraft and were designed to "offset"
the negative effects of large purchases from abroad on the current
account of a country. |
| • |
Swaps - Used in countries in which both the government
and the private sector face large debt burdens. Involves swapping
debt for something else such as other debt, equity, products,
nature preservation, and education. |
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Clearing Arrangements - Clearing accounts established
to track debits and credits of trade. |
Public Private Partnership (PPP)
PPPs are arrangements between government and private
sector entities for the purpose of a myriad of projects.
Such partnerships are characterized by a long term
partnering relationship between the public and private sector with
the sharing of investment, risk, responsibility and reward between
partners. With PPP, the public sector will focus on acquiring services
at the most cost-effective, best value for money and innovative
basis, rather than owning and operating the assets.
The underlying raison d’être for establishing
partnerships is that both the public and private sector have unique
characteristics that provide them with advantages in specific aspects
of service or project delivery which can be exploited for the benefits
of all stakeholders.
Having been previously involved as legal counsel for
local law to the PUB’s project consultant in Singapore’s
first PPP project in the desalination plant (by way of a Design-Build-Operate-Own
model) and as Head Project Counsel in the project manager cum sponsor
company in the US$5 billion Bakun Hydro-electric Power Build Operate
and Own Project in Malaysia as well as various aspects of Defence
PPPs, David Hew and his team are well placed as legal advisors in
the PPP project team to:-
• structure and draft the tender documents,
PPP contract and the other agreements related to the PPP framework;
• advise on best procurement for bidding and
risks analysis;
• provide advice on, property, planning, environmental
law, banking, competition law and intellectual property aspects
of the agreements
• identify and advise on implications
of contract terms such as payment mechanisms, termination clauses
and step-in rights, just to name a few.
Contact Person : David
Hew
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