Post by account_disabled on Mar 3, 2024 5:16:42 GMT
Global infrastructure investment needs between now and are likely to top $ trillion, according to the Global Infrastructure Hub. While governments must take the lead to meet this massive need, they cannot fund this level of infrastructure investment alone, and many governments are trying to position their countries as favorable destinations for private infrastructure investment. One mechanism to achieve this is through public-private partnership agreements, but this process is not without challenges.
The concept of asset recycling consists of two main components: Monetizing existing infrastructure assets through sale or lease to the BTC Number Data private sector, followed by Investing in new infrastructure using the proceeds received from asset monetization Asset recycling holds out the possibility of providing new infrastructure without adding to public debt, while maintaining or potentially improving existing infrastructure service delivery.
Leader One country that has explored the concept of asset recycling and widely implemented it is Australia. Australia’s Asset Recycling Initiative (ARI) is a scheme for the federal government to provide incentives to the state government to pursue asset recycling transactions. The ARI is a five-year program running from to , and the designated funding has been allocated to specific proposals on a first-come, first-served basis see Exhibit below.
The concept of asset recycling consists of two main components: Monetizing existing infrastructure assets through sale or lease to the BTC Number Data private sector, followed by Investing in new infrastructure using the proceeds received from asset monetization Asset recycling holds out the possibility of providing new infrastructure without adding to public debt, while maintaining or potentially improving existing infrastructure service delivery.
Leader One country that has explored the concept of asset recycling and widely implemented it is Australia. Australia’s Asset Recycling Initiative (ARI) is a scheme for the federal government to provide incentives to the state government to pursue asset recycling transactions. The ARI is a five-year program running from to , and the designated funding has been allocated to specific proposals on a first-come, first-served basis see Exhibit below.
