At the project preparation stage, the Relevant Authority should conduct the following activities:

• Recruit and engage advisors, including financial, technical, legal, and other advisors (such as, accounting and taxation, and environmental and social).

• Conduct asset due diligence, including technical, commercial, financial, environmental, social, legal and accounting, and tax due diligence.

Key features are outlined as below: 

The framework for monetisation of core asset monetisation has three key imperatives.

According to the Global Infrastructure Hub, the global infrastructure investment needs across 50 countries and seven sectors from 2016 to 2040 will reach $94 trillion.1 In Asia alone, infrastructure investment needs from 2016 to 2030 are estimated at $26 trillion, or $1.7 trillion per year, for the region to maintain its pace of development according to a recent report from the Asian Development Bank (ADB).

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.

Find samples of Asset Recycling Transactions from around the world.