National Health Service (Private Finance) Act 1997

1 Powers of NHS trusts to enter into agreements

(1) The powers of a National Health Service trust include power to enter into externally financed development agreements.

(2) For the purposes of this section, an agreement is an externally financed development agreement if it is certified as such in writing by the Secretary of State.

(3) The Secretary of State may give a certificate under this section if—

(a) in his opinion the purpose or main purpose of the agreement is the provision of facilities in connection with the discharge by the trust of any of its functions; and

(b) a person proposes to make a loan to, or provide any other form of finance for, another party in connection with the agreement.

(4) If a National Health Service trust enters into an externally financed development agreement it may also, in connection with that agreement, enter into an agreement with a person who falls within subsection (3)(b) in relation to the externally financed development agreement.

(5) In subsection (3)—

• “another party” means any party to the agreement other than the trust; and

• “facilities” includes—

  (a)

  works, buildings, plant, equipment or other property; and

  (b)

  services.

(6) The fact that an agreement made by a National Health Service trust has not been certified under this section does not affect its validity.