SWEDEN Law and Practice Contributed by: Niklas Sinander, Elin Carlsson, Axel Schelén and Björn Wendleby, Harvest Advokatbyrå
8.6 Common Financing Sources and Typical Structures The majority of Swedish project finance activity relates to renewable energy projects, and more specifically to onshore wind power projects. The typical financ- ing source for these projects is bank loans borrowed by a project company, being a special purpose vehi- cle established for the specific project. Such project company generally enters into the relevant finance agreements, in many cases guaranteed by a parent company. The structure is set up to facilitate a sale of the whole project to a third party at a later stage. Sponsors generally contribute capital to supplement the loan financing. Lenders are most commonly based within the EU and the financings are either bilateral financing arrangements or syndicated deals. 8.7 Natural Resources The level of natural resources is high in the northern part of Sweden, where many large companies have commenced high-profile green industrial projects. These business projects are often complex and cap- ital-intensive, and may encounter issues with local property owners (in many cases municipalities), local infrastructure and environmental permits.
8.8 Environmental, Health and Safety Laws Environmentally hazardous activity requires an envi- ronmental permit pursuant to the Swedish Environ- mental Code (SFS 1998:808). Certain projects may therefore need environmental permits, which should be taken into account in project financings. Most appli- cations for environmental permits are submitted to the local County Administrative Board, while projects with a more significant environmentally hazardous impact (such as mining and industrial projects) should obtain an environmental permit from the relevant Land and Environment Court ( Mark- och miljödomstolen ). Such processes will generally involve consultation with other concerned parties regarding the contemplated environmentally hazardous activities, which in many cases can be time-consuming. The Swedish Work and Environment Act (SFS 1977:1160), supplemented by certain rules issued by the Swedish Work Environment Author- ity ( Arbetsmiljöverket ), generally regulates the work environment; it aims to prevent work accidents and ill health as well as to foster a good working environ- ment.
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