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

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 balance sheet or off balance sheet?

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