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Research and Briefings

Infrastructure Asset Recycling: Insights for Governments and Investors

 


According to the World Economic Forum, the world is facing a significant infrastructure gap, which the public sector will not be able to bridge on its own.

Efforts to attract private participation in infrastructure development have been ongoing, but are faced with important barriers, notably the lack of robust pipelines of bankable projects.

Asset recycling has emerged as one of the options for governments to facilitate private participation in infrastructure development. This involves the monetisation of existing public assets through sale or lease to the private sector, with all funds received being reinvested in new infrastructure.

Asset recycling offers the opportunity to provide newly-needed infrastructure without adding to public debt, all while maintaining or potentially improving existing infrastructure service delivery.

This report explores how the asset recycling concept has been practically implemented in the context of Australia It discusses the key takeaways for governments that are considering implementing a similar scheme and key challenges for private businesses looking to take part in asset recycling programs.

Download the full report to read more.