Asset Recycling Handbook (Download PDF)
The Asset Recycling Handbook provides a roadmap for monetizing existing infrastructure assets and reinvesting the proceeds into new projects, a strategy to unlock capital and support further infrastructure development.
Infrastructure development is crucial for the continued economic growth and prosperity of emerging markets and developed economies (EMDEs). The demand for infrastructure, propelled by population growth and ever-increasing rate of urbanization, has resulted in the need to build, and improve infrastructure in EMDEs.
EMDEs are increasingly facing strong headwinds with rising inflation, volatile economic settings, and other recent macro-economic shocks. These factors have adversely impacted their fiscal capacity to fund infrastructure. Furthermore, the climate crisis has propelled countries to invest in mitigating measures to counter the adverse effects of climate change, such as clean energy transition, electric mobility, and climate resilience measures. The substantial capital investment required means that traditional sources of funding are increasingly stretched and need to be augmented by other funding solutions. Given so, countries are exploring Asset Recycling as a mechanism to unlock capital invested in existing infrastructure assets and to apply the proceeds to develop new infrastructure assets. To facilitate this, the World Bank Infrastructure Finance Department (IFD) has developed an Asset Recycling Handbook with the support of KPMG in Singapore (Sharad Somani and Rishabh Jain). The Handbook provided a roadmap for Asset Recycling, with emphasis on both the monetization of infrastructure assets and the re-investment of the proceeds.
The World Bank’s IFD team led the development of this Handbook; the team constituted Luciana Drummond, Jeff Delmon, and Elena Timusheva.
