I guess some of you may have dealt with this in the past, we have a private contractor agreed to build/maintaining our bus shelters. Council is not required to pay any costs, at the same time contractor pays a share of advertisement income from these bus shelter to the council (minimum guaranteed revenue) for 15 years. At the end of contract, bus shelters are passed to council ownership for nil consideration. So overall the Council is economically benefit from this contract.
I went this through using Service Concession arrangement, I am sure i can recognise the asset in PPE say £1m with a liability of £1m but this eventually increases the CFR. Wonder if there is a suggestion to avoid impact of this contract to CFR. As effectively the Council is not making any payment /borrowing.