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Risk Matrix for Power Generation
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TOR for Transaction Advisors for Power Generation Development
This document has been prepared as part of the annex of the section on Guidelines in Implementing Asset Recycling in the PPP Legal Resource Center (PPPLRC) for contracts, laws and regulations. It is…
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Airport Module
Module 1 of the Annex in Asset Recycling.Many airports are owned and operated by government bodies, such as ministries or state-owned enterprises. Airports are highly valuable assets, which serve not…
Library
Sample Transaction Documents, TOT Model, India
The National Highways Authority of India (NHAI) has adopted a single stage two-part system for selection of the bidder for award of the projects under TOT model.
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Contract Finalisation in Asset Recycling
Final NegotiationsWith the preferred bidder identified, the final negotiation process will commence. The tender committee should take on the role of the negotiation team, with additional support from…
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Bid Evaluation and Award in Asset Recycling
Financial ConsiderationsAssessment of the financial proposition in each bid is a key component of the evaluation.Depending on the transaction, financial considerations (highest bid or highest net…
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Managing the Bid Process in Asset Recycling
Pre-bid MeetingsTo improve clarity of the tendering process and the Relevant Authority’s requirements, the Relevant Authority should provide for a clarification process with the bidders, through…
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Request for Proposals (RfP) in Asset Recycling
After the bidders have been shortlisted through the RfQ process, the next step is the request for proposal (RfP) to request for binding bids and select the preferred bidder.The diagram below outlines…
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Request for Qualification (RfQ) in Asset Recycling
The purpose of the RfQ is to:Formally inform the market of the proposed opportunity, scope, timeframes of the transaction.Ascertain the level of market interest in the transaction and allow…
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Market Sounding in Asset Recycling
The government should approach the market sounding exercise to assess the following:Project viability: whether the proposed asset put up for recycling is viable (from private sector’s perspective);…
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Multi-asset Procurement (Asset Bundling) in Asset Recycling
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-…
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Commercial Principles in Asset Recycling
The Relevant Authority should determine key commercial principles that will form the basis of the project structure and the project agreement; the commercial principles should ensure value…
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Risk Identification and Allocation in Asset Recycling
The Relevant Authority should identify and allocate risks for the concession or lease arrangement as part of the transaction preparation. The objective is to ensure that specific risks are…
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Ownership Models in Asset Recycling
There are several variations as to how an asset recycling transaction undertaken by way of a concession or lease arrangement can be implemented. In this section, we discuss the following models:…
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Asset Valuation Methodology in Asset Recycling
Valuation of the asset is conducted to estimate and determine the fair value of the upfront fee that a bidder may pay to the Relevant Authority (or any other form of consideration).This is a crucial…
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Risk Matrix for Airports
Sample risk matrix – AirportsRiskDescriptionPublicPrivate SharedMitigationOperating Risk Inadequate performance The risk of service quality provided by the…
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Environmental and Social Due Diligence in Asset Recycling
The Relevant Authority should be required to disclose environmental requirements (permits, standards, etc.), risks, issues, liabilities, compliance status. Climate risk disclosure can help raise…
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Accounting and Tax Due Diligence in Asset Recycling
Besides the technical, commercial, financial and legal due diligence, other assessment includes accounting and tax due diligence, which should consider the following:Accounting due diligenceIdentify…
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Prescriptive Legal Due Diligence in Asset Recycling
OverviewPrescriptive due diligence outputs are primarily focused on describing the legal aspects of structuring options in relation to the descriptive due diligence outputs.The output of the…
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Descriptive Legal Due Diligence in Asset Recycling
OverviewDescriptive due diligence outputs are focused on describing the current legal aspects relevant to the Relevant Authority and the asset as at the review date. This description is without…
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Review of Legal and Regulatory Context in Asset Recycling
Conducting due diligence with respect to the legal and regulatory context requires a review of the laws, regulations and policies affecting the Relevant Authority and the asset.Areas covered may…
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TOR for Transaction Advisors for Airport Development
This document has been prepared as part of the annex of the section on Guidelines in Implementing Asset Recycling in the PPP Legal Resource Center (PPPLRC) for contracts, laws and regulations. It is…
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Legal Due Diligence and Review in Asset Recycling
Legal due diligence in connection with an asset recycling transaction preparation covers the main topics listed below.Review of legal and regulatory context (in relation to the laws, regulations and…
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Financial Due Diligence in Asset Recycling
The financial due diligence should cover the analysis of the asset’s historical and projected financial performance. This will provide the Relevant Authority with an indication of the capital…
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Commercial Due Diligence in Asset Recycling
The coverage of the commercial due diligence process is represented in the diagram below:Figure 2: Commercial Due Diligence Coverage Demand/ Patronage/Traffic Assessment An assessment…