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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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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…
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Technical Due Diligence in Asset Recycling
The objective of the technical due diligence is to identify potential technical issues with respect to the asset. This exercise should form the basis for determining the scope for management,…
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Due Diligence Process in Asset Recycling
table tr th, table tr td { border:1px solid #ffffff; padding:10px } The Relevant Authority should conduct asset due diligence as part of the transaction preparation leading up to the asset…
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Engaging Advisors in Asset Recycling
table tr th, table tr td { border:1px solid #ffffff; padding:10px } Advisory Services for an Asset Recycling ProjectFigure 1: Advisory Services for an Asset Recycling ProjectThe engagement of…