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:
Legal and Regulatory Checks in Asset Selection
Check the following legal and regulatory parameters to consider in assessing the suitability of an asset for recycling.
Financial/Commercial Checks in Asset Selection
The following commercial and financial reviews should be considered to determine if an asset has the potential to be recycled.
Operational Checks in Asset Selection
Find operational criteria in selecting an appropriate asset as the subject of an asset recycling transaction.
Guidelines for Asset Identification
Asset Selection Process
Guidelines for the Selection of Assets - In selecting an appropriate asset as the subject of an asset recycling transaction, the Relevant Authority should consider five (5) key parameters; being (i) operational, (ii)
Structure of Guidelines for Asset Recycling
This document provides a set of step-by-step guidelines for relevant authorities to monetize existing assets by recycling them through long-term concession or lease arrangements. The development of the Guidelines has been informed by best practices gleaned from programs implemented by various countries.
The Guidelines are structured as follows:
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.
Models of Asset Recycling
This section describes in more detail the range of models that have been observed in asset recycling transactions.
Executive Summary: Guidelines for Asset Recycling
Governments around the world are increasingly looking at improving the quality of infrastructure and delivering improved services to the community. Infrastructure investment is crucial to the on-going economic prosperity and development of any country. For most countries, to meet the substantial infrastructure investment capital needed to fund an infrastructure program, there is a need to unlock multiple sources of funding to ensure that current developmental momentum can be sustained.
Green Climate Fund
GCF. Accessed March 6, 2017. “Green Climate Fund website.” Website. [#4441]