Utilization of Proceeds in Asset Recycling

Options for utilization proceeds

The government entities may consider the following for utilization of proceeds from asset recycling:

  • Re-investment of proceeds in greenfield assets.

  • Re-payment of existing debt relating to the asset that is the subject of the asset recycling transaction (this would usually be a pre-condition of the lenders, unless the current lenders agree to continue their exposure to the project even after the private party takes over operations and maintenance of the project).

Guidelines for Implementing Asset Recycling

Concession and Lease Models

Infrastructure is pivotal to sustainable development with positive impacts on the economy, environment and society if implemented correctly. Each piece of infrastructure asset should not be viewed on a standalone basis (such as a power plant, an airport, a road, or a water facility), but as part of an ecosystem comprising of a portfolio of assets that collectively support the SDGs.