Annex in Asset Recycling
The Guidelines are also supplemented with following Annex:
The Guidelines are also supplemented with following Annex:
The government entities may consider the following for utilization of proceeds from asset recycling:
Re-investment of proceeds in greenfield assets.
Re-payment of existing debt relating to the asset that is the subject of the asset recycling transaction (this would usually be a pre-condition of the lenders, unless the current lenders agree to continue their exposure to the project even after the private party takes over operations and maintenance of the project).
Asset recycling transactions involving a long-term concession or lease of an asset to a private partner constitute a long-term commitment by the private sector to operate and maintain, and sometimes redevelop and/or expand, a Relevant Authority's existing infrastructure project to deliver services to the public or the Relevant Authority. These activities are governed by the project agreements.
This section presents different modes of financing an asset recycling finance. Private sector participants in an asset recycling transaction will be required to fund the upfront payment to secure the concession or lease. The private sector may also be required to fund any required capital expenditure to refurbish or re-develop the asset. This section discusses the financing options and instruments available to the private sector and provides the relevant Authority with an understanding of the criteria issues to ensure the bankability of any proposed asset recycling scheme.
Find guidelines, roles of tender committee and required documents to tender Asset Recycling Transaction.
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.
Find samples of Asset Recycling Transactions from around the world.
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)
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:
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.