This set of Asset Recycling Guidelines have been developed to support governments in selecting, preparing, and delivering asset recycling transactions, with a focus on long-term concession and lease models only. The Guidelines have been drafted to provide a systematic and consistent approach to facilitate asset recycling transactions under these models.
This document provides a set of step-by-step guidelines (the 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:
- Section 3 sets out the Asset Selection Process which a Relevant Authority should undertake in the selection of an appropriate asset for the purposes of an asset recycling transaction.
- Section 4 sets out the Project Preparation Process, which includes the selection of transaction advisors, the due diligence process, project structuring and market sounding activities.
- Section 5 sets out the Tendering Process for the asset recycling transaction, from procurement to bid award and contract finalization.
- Section 6 sets out financing options and instruments available for asset recycling transactions.
- Section 7 sets out the Contract Management process post contract award; this includes guidelines for developing the contract management plan, monitoring and reporting, and dispute resolution mechanism.
- Section 8 sets out mechanisms for the use of proceeds raised from an asset recycling transaction based on international best practices.