(1)In giving in relation to a PPP agreement—
(a)any direction under section 229(3) above, or
(b)any guidance under section 230(2) above,
the PPP arbiter shall act in the way he considers best calculated to achieve the objectives specified in subsections (2) to (5) below.
(2)The objective specified in this subsection is to ensure that an opportunity to review and amend the requirements imposed, or proposed to be imposed, on a PPP company by or under the PPP agreement in question is afforded to the appropriate relevant body if, in the opinion of the PPP arbiter, the proper price for the performance of those requirements exceeds the resources which that relevant body has notified to the PPP arbiter that it has, or expects to have, available for the purpose.
In this subsection appropriate relevant body means a relevant body which is a party to the PPP agreement and is to pay the price under the agreement.
(3)The objective specified in this subsection is to promote efficiency and economy—
(a)in the provision, construction, renewal, or improvement, as the case may be, and
(b)in the maintenance,
of the railway infrastructure to which the PPP agreement in question relates.
(4)The objective specified in this subsection is to ensure that any rate of return incorporated in the PPP agreement in question would, in the opinion of the PPP arbiter,—
(a)taking into account such matters as may be specified in the PPP agreement, and
(b)leaving out of account such other matters as may be so specified,
be earned by a company which is efficient and economic in its performance of the requirements imposed on the PPP company by or under the PPP agreement.
(5)The objective specified in this subsection is to enable any PPP company which is a party to the PPP agreement in question to plan the future performance of the agreement with reasonable certainty.
(6)In giving any such direction or guidance as is mentioned in subsection (1) above the PPP arbiter is to take account of any factors which—
(a)are notified to him by the parties to the PPP agreement in question, acting jointly, as factors to which he must have regard when giving the direction or guidance in question, or
(b)are factors specified or described in the PPP agreement in question as factors to which the PPP arbiter must have regard in giving any direction under section 229(3) above or any guidance under section 230(2) above.
(7)For the purposes of subsection (4) above, a rate of return is incorporated in a PPP agreement if, and only if, the PPP agreement—
(a)contains provision specifying, or for determining, the rate of return which the PPP company in question might reasonably expect to earn; and
(b)states that subsection (4) above is to have effect in relation to that provision.
(8)In this section railway infrastructure means the railway or proposed railway in question and includes a reference to any stations, rolling stock or depots used or to be used in connection with that railway.