Document Type

Working Paper

Publication Date

6-25-2013

SSRN Discipline

LSN Subject Matter eJournals; ERN Subject Matter eJournals; Financial Economics Network; Sustainability Research & Policy Network; Management Research Network; Economics Research Network; Legal Scholarship Network; Law School Research Papers - Legal Studies; FEN Subject Matter eJournals; Law & Society eJournals; International Law & Trade eJournals; SRPN Subject Matter eJournals; Corporate Finance eJournals; Social Responsibility of Business eJournals; Environmental & Natural Resources Law eJournals

Abstract

The essential thesis of this article is that as corporate and project finance trends continue in nuclear power plant financing resulting in diversified and much broader and more complex structures of foreign investment international investment law will become increasingly relevant to and influential upon these transactions This in turn will spawn a new wave of disputes based in international investment law claims before international arbitral tribunals including the ICSID After discussing the 2011 Fukushima nuclear disaster and the first international investment law case directly related to an investment in a nuclear power plant the article begins in Part I by describing recent trends in the financing of nuclear power plants These trends include a shift from almost exclusively sovereignassumed financing cost and risk to other financing models which increasingly access global capital markets and spread risk among a larger and more diverse set of investors It then proceeds in Part II to review and consider the international legal sources addressing nuclear energy development and related international trade and investment transactions focusing on the sources of international investment law It considers both the primary ways in which the current trends in nuclear power plant financing are making international investment law increasingly relevant to nuclear power plant related investments as well as the secondary effect this increasing relevance will likely have upon future structuring of financing arrangements for new nuclear power plants In Part III it provides detailed consideration of the application of international investment law to foreign investments in nuclear power plants including areas in which host states of such investments are most likely to experience increased exposure to liability due to current financing trends It concludes with a further consideration of the secondary effects caused by this increased host state exposure to liability including effects on future structuring of financing arrangements for new nuclear power plants and effects on renegotiations of international investment law instruments between actual or potential host states and states that are actual or potential home states of nuclear vendors and investors

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