Private finance

Any financing provided by the private sector that is at risk, that is, dependent on the financial performance of the project.
From a broad perspective, any financing provided by the private sector might be regarded as private finance. On the other hand, “private finance” may be considered a regulation matter: from a national accounting and reporting perspective, private finance means financing that is not regarded as public debt, for example, it is not consolidated in the government’s sector balance sheet.
[The PPP Certification Guide considers as “private finance” any finance provided by the private sector that is at risk in the sense that it is dependent on the performance of the project-contract. This consideration is aligned with the concept of the economic ownership of the asset, which is used by some standards and guides to assess whether a PPP asset should be consolidated or recorded in the government balance sheet].


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