Regulation 23 Arrangements involving public bodiesI1

United Kingdom

(1)

A payment under a construction contract is not a contract payment if—

(a)

the person making the payment (“the public body”) is within any of paragraphs (b) to (k) of section 59(1) of the Act, and

(b)

the payment is made under a private finance transaction.

(2)

For the purposes of this regulation, a transaction is a private finance transaction if—

(a)

the resources are provided partly by one or more public bodies and partly by one or more private persons;

(b)

it is designed wholly or mainly for the purpose of assisting a public body to discharge a function or is ancillary to the function of a public body; and

(c)

the public body makes payments by instalments at annual or more frequent intervals of fees determined in accordance with factors which include—

(i)

the standard attained in the performance of services by the private person or persons in relation to the discharge of the function referred to in paragraph (b), or

(ii)

the extent, rate or intensity of use of the resources or the asset which is constructed, enhanced, replaced or installed under the transaction.

(3)

For the purposes of paragraph (2), “resources” includes—

(a)

funds (including payment for the provision of services or facilities),

(b)

assets,

(c)

professional skill,

(d)

the grant of a concession or franchise, and

(e)

any other commercial resource.

Annotations

Commencement

I1: Reg. 23 in force at 6.4.2007 as notified in the London Gazette (dated 9.3.2007), see reg. 1