Statistical Treatment of 'Build-Own-Operate-Transfer+L2306 Schemes

IMF Working Papers, October 1, 2002

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Statistical Treatment of 'Build-Own-Operate-Transfer+L2306 Schemes

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Bibliographic details

• Authors: Brian T Donaghue
• Published: October 1, 2002
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451858198.001

Summary and central argument

• The paper argues that assets produced under build-own-operate-transfer (BOOT) schemes—under which public infrastructure assets are legally owned and operated for a defined period by the private corporation that constructs them, before being transferred to the government—should be treated in macroeconomic statistics as owned by the government from the outset.
• The paper considers three approaches to the treatment of the economic stocks and flows entailed in these arrangements.
• While the preferred approach conceptually is to impute the creation and extinguishment of financial assets and liabilities, this approach is not consistent with the System of National Accounts 1993.
• Therefore an operating lease approach to BOOT schemes is recommended.

Approaches considered

• Imputation of creation and extinguishment of financial assets and liabilities:
  • Conceptually preferred.
  • Not consistent with the System of National Accounts 1993.
• Operating lease approach:
  • Recommended given consistency considerations with System of National Accounts 1993.
• (The paper examines a total of three approaches; the summary highlights the conceptual preference and the practical recommendation.)

Findings and implications for macroeconomic statistics

• BOOT assets, despite legal private ownership during the operating period, are argued to be economically owned by government from the outset for statistical purposes.
• Treatment affects the recording of economic stocks and flows in national accounts and public sector statistics.
• Consistency with the System of National Accounts 1993 is a key constraint guiding the recommended statistical treatment.

Content in this bundle

• Statistical Treatment of Build-Own-Operate-Transfer' Schemes - WP/02/167
  • Statistical Treatment of Build-Own-Operate-Transfer' Schemes - WP/02/167 (Markdown version)
  • Statistical Treatment of Build-Own-Operate-Transfer' Schemes - WP/02/167 (PDF)