Project finance is a debt finance and risk allocation technique. In Mexico, contracts of this nature mostly arise as a result of a government procurement process. In such projects, there is a limited amount of freedom for the negotiation of the contractual terms and conditions. / Contracts for the engineering, procurement and construction of power plants implemented under the project finance structure are subject to the ordinary law of contracts as opposed to the administrative law which may place the government in a stronger bargaining position. Regardless of the application of the private or administrative law the principle of autonomy of will may seem to be relegated to a secondary level in these transactions. Given this aspect it is interesting to evaluate what role the parties play in negotiating the contract in order to establish whether freedom of contract is a mere fiction in such transactions.

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