Asset selection for toll-operate-transfer (TOT) model of road asset monetization, India

The selection of assets is based on asset’s track record of exhibiting certainty in toll generation. As the assets are operating, concessionaires do not bear any developmental and construction risks.

Accordingly, the assets should (i) be operational with observable traffic demand and be supported by (ii) reliable traffic forecast with (iii) substantial capital expenditure already incurred thereby de de-risking the concession from development and construction risks.

Early-Stage Market Testing

Early-stage market interest should also be conducted to shape the potential transaction and assess the level of market interest in asset recycling transactions while testing broader issues: