Suppose that project sponsors build a facility under a PPP scheme. The public administration pays every cost

Question:

Suppose that project sponsors build a facility under a PPP scheme. The public administration pays every cost overrun incurred by the private sponsors during construction and the sponsors fully bear market and operational risk (i.e. the public sector does not pay any availability fee and apply a full set of penalties in case of performance below pre-agreed standards). If the PPP is carried out in a European Union country, how will this contract be recorded by the government?
On or off Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...