Monetize Asset / Transaction Process
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On this page: Understand the key factors to consider when selecting the appropriate monetization model. Read more below, or visit the main page for the Asset Recycling Handbook and Content Outline, or Download the Full Report.
Choosing the right monetization model There are various monetization models that can be applied, including direct contractual agreements, divestments, and structured financing. The following factors should be considered when selecting the appropriate monetization model: Some of the key asset recycling models, including the factors that determine the choice of the models, are discussed in Section 2 in this Handbook. Asset preparation, structuring and maximizing asset value The Government should invest significant effort in preparing and structuring the asset to ensure that the value realized is optimized. This requires extensive due diligence (commercial and financial, legal, technical, accounting and tax, environmental and social) to be undertaken by experienced transaction advisors, understanding investor sentiments through market consultation to enable the structuring of bankable and commercially attractive concession schemes. Standardized transaction process information and documentation in the public domain Governments should implement an approach to market that is consistent and maintained on each transaction, giving bidders certainty and confidence in the program. The development of a standard approach requires planning and preparation (by each Government entity that is undertaking an asset recycling transaction together with its advisors) to provide for a smooth and efficient process. Note Guidelines for asset recycling (concession and lease model) The Public-Private Partnership Legal Resource Center (PPPLRC) provides access to step-by-step guidelines for implementing asset recycling transactions (concession and lease model). The guidelines have been developed to support governments in selecting, preparing, and delivering asset recycling transactions, with a focus on long-term concession and lease models. The guidelines have been drafted to provide a systematic and consistent approach to facilitate asset recycling transactions under these models. The guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the guidelines be reviewed and adapted for specific transactions. Key Features of the Guidelines: These guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the guidelines be reviewed and adapted for specific transactions.
This section has not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the content will be reviewed and adapted for specific transactions.
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