Nr | Question | YES | NO | User comments | Reference to MGDD | |
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III. Statistical sector classification of the partner A PPP/concession between government and a non-private partner (i.e. a public company that is referred to in ESA95 as "public corporation") is possible from a statistical point of view. However, such "public-public partnership" should fulfil certain conditions in order to be classified off balance sheet for government. This section considers the issue that is at the core of such an analysis: classification of a non-private PPP partner into a statistical institutional sector. | ||||||
10 | Is the partner a public entity? |
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| The partner is public if, according to national accounts (ESA95) rules, government or a public unit determines its general corporate policy. It is also the case if it performs a government function or is controlled by another public unit (see question 16 for the assessment of a control). If the answer is "no", the unit involved in this transaction is private. Please go to question 35. | VI.5.3.1/24 |
11 | Does the partner (in this case a public corporation) show clear competence (experience) in the area of activity covered by the PPP? |
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| If the answer is "no", it suggests an on-balance sheet treatment. It is very unlikely that the partner will be interested to be involved in the activity in which he does not have a clear competence. The term "competence" here means experience, not the legal/statutory right to provide particular activity. If the public corporation nevertheless engages in a PPP without relevant competences, its autonomy of decision would need to be confirmed (see questions 13 and 16). | VI.5.4.1/73 |