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The fifth structural failure mode of PPPs. Accrual accounting treatments, off-balance-sheet vehicles, and concession asset recognition conventions systematically obscure the true cost of private capital to the public. Availability payments appear as operational expenditure. Residual value risk appears nowhere. The public cannot see what it has committed because the accounting framework does not have the categories to represent it.
A public authority's accounts show an availability payment concession as a routine operating expense, while the contingent liability attached to early termination sits outside the balance sheet entirely. A CADA, by contrast, is accounted for by the deploying foundation — where the exposure actually resides — leaving the recipient institution's balance sheet clean.
CADA Section 2 (citing Ghadamian 2025b)