Regulation 3 Definition of “an agreement under the private finance initiative”

(1)

For the purposes of these Regulations “an agreement under the private finance initiative” means an agreement to which paragraph (3) or (4) of this regulation applies.

(2)

In this regulation–

“asset” means–
1. (a)
  
  any tangible asset, including any land, building or equipment; or
2. (b)
  
  any computer software;
“works” means the construction, enhancement, replacement or installation of an asset.

(3)

This paragraph applies to an agreement where–

(a)

consideration is received by the governing body of a maintained school under the agreement and that consideration includes–

(i)

the provision or making available of an asset or the carrying out of works for the purposes of, or in connection with, the discharge of a function of the governing body; and

(ii)

the provision of services for the purposes of, or in connection with, the discharge of the same function;

(b)

the governing body do not give to any other person any indemnity or guarantee in respect of any liabilities of the person with whom they enter into the transaction (whether those liabilities are incurred in respect of the transaction or otherwise);

(c)

the consideration given by the governing body under the transaction includes the payment of fees by instalments at annual or more frequent intervals;

(d)

the fees are determined in accordance with factors which in every case include–

(i)

standards attained in the performance of the services; or

(ii)

the extent, rate or intensity of use of the asset, or as the case may be of the asset which is constructed enhanced, replaced or installed under the transaction; and

(e)

the first instalment of fees falls to be paid after the services have started to be provided.

(4)

This paragraph applies to an agreement where private finance initiative credits are given to a local authority in respect of that agreement.