Disputes Settlement in Project Finance With emphasis on Transactional Unity

Major investments in various projects are the essential needs of any country and project financing is treated as the most common methods of investment. In this method which used in order to construction or operation of a project in special industry, some participants collect their equity through providing financial sources. Because of existence of commercial and political risks, Disagreements in project finance contracts are common and usual. Paying attention to dispute settlement through insert its relevant clause such as recourse to domestic courts or arbitration or another alternative disputes resolutions are other important matters. Arbitration is used widely, because this mechanism has more interests in comparison with other dispute settlement mechanisms especially domestic courts. There are no general negotiations to enter into a single contract, but a series of contracts, which, once entered into, will define the global structure of the project. Therefore, the participants must recognize the concept of transactional unity with respect to the resolution of their disputes and reflect this unity in their future transactions. Any failure to do so would dissolve the transactional unity of the structure and jeopardize the project's viability.