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Multi-asset Procurement (Asset Bundling) in Asset Recycling

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Governments considering asset recycling transactions may envisage bundling multiple assets of same asset class as part of a single asset recycling transaction.

Key Parameters to Consider for Multi-asset Bundling

Some key parameters to consider are:

Table 6: Key Parameters to Consider for Multi-asset Bundling 

Considerations for Multi-asset Bundling
Criteria to Consider Bundling
Value for Money Outcome

In some cases, small-scale assets may not achieve either value for money outcomes or sufficient proceeds for re-investment. Bundling can then be a solution to that issue.

Private Sector Interest in Scale

The asset size and potential should be sufficient to generate market and private sector interest. This can be tested in the initial market sounding.

Investor / Lender Confidence

Debt and equity financiers generally view bundled projects as more favourable given the higher ticket size and diversified risk profile. Specifically, for equity investors, this may justify higher bidding and internal business case.

Multi-asset Synergies There may be operational synergies (for instance, in cases of road networks or rail networks) in bundling the assets.

There may be opportunities to bundle commercially viable and sub-viable projects wherein the private sector can cross-subsidize the losses.

Efficiencies in Procurement

More efficient procurement and contract administration thus minimising transaction costs and time. Pricing efficiencies enable the Relevant Authority to lock in the price of several projects in a single procurement.

Criteria to Not Consider Bundling

Bundling of multiple assets under a single concession may lead to additional complexities and risks, for example, operational delays that impact only one of the bundled assets and has an impact on the entire bundled portfolio due to cross-default provisions.

Reduces Competition Depending on the size of the transaction (i.e., number of bundled assets), bundling may reduce the pool of bidders, thus reducing competition.


The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions To find more, visit the Guidelines to Implementing Asset Recycling Transactions Section Overview and Content Outline, or Download the Full Report.




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Updated: May 24, 2023