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Bundling and Unbundling Criteria

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Module 7 of the Annex in Asset Recycling.

For an Asset Recycling transaction, the Relevant Authority can consider bundling multiple assets as part of a single Asset Recycling transaction. Find more below, or visit the Guidelines for Implementing Asset Recycling Transactions section and Content Outline, or Download the Full Report.

Key considerations that a relevant authority should consider for bundling are:

Considerations for Multi-asset Bundling

Criteria to Consider Bundling

Value for Money Outcome

Smaller scale Assets may not achieve either value for money outcomes or generate sufficient proceeds for re-investment given the costs involved in preparing an Asset Recycling transaction.

Private Sector Interest in Scale

Asset size and potential should be sufficient to generate market and private sector interest as the private sector will have to mobilize resources for project implementation. Given the costs and commitment involved in bidding for an Asset, private investors such as institutional funds typically set a minimum investment threshold for an Asset to warrant their attention. The potential overall value of the bundled Assets can be tested as part of the initial market sounding.

Investor / Lender Confidence

Debt and equity financiers generally view bundled projects as more favourable given the higher ticket size. Specifically, for equity investors, this helps to justify committing to higher bidding and resourcing costs.

Multi-asset Synergies

There may be operational synergies (for instance, in cases of road networks or rail networks) in bundling several assets together. This is provided that attributes of the Assets (such as location and specific features of each asset in terms of asset maturity, servicing requirements etc) in the grouping allows for the generation of economies of scale.


There may be opportunities to bundle commercially viable and sub-viable projects wherein the private sector can cross-subsidize the losses.

Risk Diversification

By bundling assets into a single package, diversification can be achieved thereby reducing the overall risk of the transaction.

Efficiencies in Procurement

More efficient procurement and contract administration thus minimising transaction costs and time. Pricing efficiencies enable the relevant authority to lock in the price of several projects in a single procurement.

Criteria to Not Consider Bundling


Bundling of multiple assets under a single concession may lead to additional complexities and risks, for example, operational delays that impact only one of the bundled assets and has an impact on the entire bundled portfolio due to cross-default provisions. Bundling several assets under one concession can introduce complexity, To a certain extent, this can be managed by introducing greater level of standardisation.

Reduces Competition

Depending on the size of the transaction (i.e., number of bundled assets), bundling may reduce the pool of bidders, thus reducing competition. Conversely, if the relevant authority can optimise the size of the transaction, bundling of assets may increase competition.


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 To find more, visit the Guidelines to Implementing Asset Recycling Transactions Section Overview and Content Outline, or Download the Full Report.




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Updated: October 2, 2023