{
  "url": "https://openlegislation.uk/eu-regulation-2015-207/annex-III/division-2/division-2.2/division-2.2.3",
  "json_url": "https://openlegislation.uk/eu-regulation-2015-207/annex-III/division-2/division-2.2/division-2.2.3.json",
  "legislation": "eur/2015/207",
  "legislation_title": "Commission Implementing Regulation (EU) 2015/207 of 20 January 2015 laying down detailed rules implementing Regulation (EU) No 1303/2013 of the European Parliament and of the Council as regards the models for the progress report, submission of the information on a major project, the joint action plan, the implementation reports for the Investment for growth and jobs goal, the management declaration, the audit strategy, the audit opinion and the annual control report and the methodology for carrying out the cost-benefit analysis and pursuant to Regulation (EU) No 1299/2013 of the European Parliament and of the Council as regards the model for the implementation reports for the European territorial cooperation goal",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2015-207",
  "path": "annex/III/division/2/division/2.2/division/2.2.3",
  "kind": "division",
  "number": "2.2.3",
  "heading": "Financial analysis in Public Private Partnership (PPP)",
  "text": "The following aspects shall be taken into consideration when the financial analysis is carried out for major projects implemented as PPPs:\n(1) The financial discount rate may be increased above the standard rate set out in Section III (Method for calculation of the discounted net revenue of operations generating net revenue after completion) of the Commission Delegated Regulation to reflect a higher opportunity cost of capital to the private investor. This higher opportunity cost should be justified by the beneficiary on a case-by-case basis, providing evidence, where possible, of the private partner's past returns on similar projects, or other relevant factual evidence.\n(2) In case of PPP schemes where the owner of the infrastructure is different from the operator a consolidated financial analysis, covering both the owner and operator, must be carried out.\n(3) Unless private partner is chosen in a fair, transparent and open competitive procedure assuring the best ‘value for money’ for public partner, in order to check the financial profitability of the private capital and avoid unduly high profit generated by EU support an indicator measuring the financial profitability of the invested capital to the private investor (FRR(Kp)) shall be calculated, comparing the net revenues accrued by the private partner with the resources provided during investment (either through equity or loans). The resulting FRR(Kp) shall be compared with national or international benchmarks on expected profitability in the given sector.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Conditions should be specified in the national guidance document on PPP."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "If private partner has been already selected; otherwise it should be described how this aspect will be assured."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2015/207/annex/III/division/2/division/2.2/division/2.2.3",
    "retrieved_at": "2026-11-01T14:46:53.697481+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}