Greater London Authority Bill - continued        House of Lords
PART IV, TRANSPORT - continued

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  CHAPTER VII
  PUBLIC-PRIVATE PARTNERSHIP AGREEMENTS
 
Introductory
PPP agreements.     185. - (1) For the purposes of this Chapter a public-private partnership agreement (referred to as a "PPP agreement") is a contract in the case of which the conditions set out in the following provisions of this section are satisfied.
 
      (2) The contract must be made by virtue of-
 
 
    (a) section 3(2) or (2A) of the London Regional Transport Act 1984; or
 
    (b) section 141(2) or (3) above.
      (3) The contract must be one which involves-
 
 
    (a) the provision, construction, renewal, or improvement, and
 
    (b) the maintenance,
  of a railway or proposed railway and, if or to the extent that the contract so provides, of any stations, rolling stock or depots used or to be used in connection with that railway.
 
      (4) The railway or proposed railway must be one which-
 
 
    (a) belongs or will belong to, or to a subsidiary of, London Regional Transport or Transport for London, or
 
    (b) is being provided, constructed, renewed or improved under the contract for, or for a subsidiary of, London Regional Transport or Transport for London.
      (5) The party undertaking to carry out or secure the carrying out of the work described in subsection (3) above (the "PPP company") must not be a public sector operator and, subject to subsection (6) below, the work must not be carried out by a public sector operator.
 
      (6) Subsection (5) above shall not be taken to preclude the rendering of assistance by a public sector operator where the assistance rendered does not constitute a substantial portion of the work.
 
      (7) The contract must be one which is, or is of a description which is, designated as a PPP agreement.
 
Public sector operators.     186. - (1) In this Chapter "public sector operator" means-
 
 
    (a) any Minister of the Crown, government department or other emanation of the Crown;
 
    (b) any local authority;
 
    (c) any metropolitan county passenger transport authority;
 
    (d) any body corporate whose members are appointed by a Minister of the Crown, a government department, a local authority or a metropolitan county passenger transport authority or by a body corporate whose members are so appointed;
 
    (e) a company-
 
      (i) a majority of whose issued shares are held by or on behalf of any of the bodies or persons falling within paragraphs (a) to (d) above;
 
      (ii) in which the majority of the voting rights are held by or on behalf of any of those bodies or persons;
 
      (iii) a majority of whose board of directors can be appointed or removed by any of those bodies or persons; or
 
      (iv) in which the majority of the voting rights are controlled by any of those bodies or persons, pursuant to an agreement with other persons;
 
    (f) a subsidiary of a company falling within paragraph (e) above.
      (2) Expressions used in sub-paragraphs (i) to (iv) of subsection (1)(e) above and in section 736 of the Companies Act 1985 have the same meaning in those sub-paragraphs as they have in that section.
 
PPP designations.     187. - (1) Any designation for the purposes of subsection (7) of section 185 above (a "PPP designation") must be made in a direction issued by the appropriate authority.
 
      (2) A PPP designation must-
 
 
    (a) describe the subject matter of the contracts to which it relates;
 
    (b) describe the parties to those contracts; and
 
    (c) if made before one or more of those contracts has been entered into, state a time by which a contract must have been entered into if it is to be a PPP agreement by virtue of the designation.
      (3) The time stated pursuant to paragraph (c) of subsection (2) above must not be later than three months after the date of the direction containing the designation.
 
      (4) A PPP designation may be made before or after the making of any contract to which it relates.
 
      (5) A contract shall not be a PPP agreement by virtue of a PPP designation made after the making of the contract, except with the consent of the parties to the contract.
 
      (6) For the purposes of subsection (1) above "the appropriate authority" means-
 
 
    (a) as respects any direction issued before the transfer date, the Secretary of State; and
 
    (b) as respects any direction issued on or after that date, the Mayor.
 
Key system assets
Key system assets.     188. - (1) In this Chapter, "key system assets" means-
 
 
    (a) any property, rights or liabilities which are, or are of a description, designated by the relevant authority as key system assets in a PPP agreement as originally made; and
 
    (b) any property, rights or liabilities which are designated, or are of a description designated, by the relevant authority after the making of a PPP agreement as key system assets in accordance with the terms of, or by an amendment made to, the PPP agreement,
  but does not include any property, rights or liabilities which, in accordance with the terms of, or by an amendment made to, the PPP agreement, have for the time being ceased to be designated as key system assets.
 
      (2) No rights or liabilities under contracts of employment shall be designated as key system assets.
 
Register of key system assets.     189. - (1) The relevant authority shall keep a register of all key system assets for the time being.
 
      (2) The register shall state-
 
 
    (a) the date on which any designation of a particular key system asset, or of a description of key system assets, was made; and
 
    (b) sufficient details of any particular key system asset, or any description of key system assets, designated as such to enable the key system assets to be identified.
      (3) The register shall be available for inspection by the public free of charge at all reasonable hours.
 
      (4) A person inspecting the register may make copies of, or of extracts from, the register.
 
 
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Prepared 30 July 1999