Eco-taxi

We have advised on pro bono basis to Almaty city municipality and its 100% subsidiary AlmatyElectroTrans LLC.

We provided both legal and tax advice on transfer of 200 cars to a taxi operator who should repay all investments with interest to our client. We advised Almaty city municipality about benefits of each option, among financial leasing, deferred sale, operational lease with purchase option. We provided a legal advice on security for investment return.

The client went with a sale of 200 cars to a taxi company with deferred payments up to five years with margin price. A taxi operator should use a natural gas as eco-fuel for taxi cars in Almaty city. We have drafted master agreement, sale and purchase agreement, car pledge agreement, taxi operation agreement and insurance agreement. We studied a buy-back option from the car factory as security on purchaser default, and gave our advice in favour of insurance as a main security on purchaser default.

The project was very difficult due to municipality specifics, numerous meetings with municipality officials of different levels. However, we shared with the municipality team our investment and M&A experience.

The project was successfully launched on 15 September 2013 on Almaty city birthday day. Almaty city mayor presented this Eco-Taxi project publicly.