91.Subsection (1) sets a limit of £400 million on the amount of outstanding expenditure which the Treasury may incur under subsection 16(1)(b) and (c). Subsection (2) explains what is meant by the term "outstanding expenditure". For investments it is the amount paid in respect of the acquisition of those which have not been disposed of; for loans, it is the amount outstanding at any time in respect of the principal sum lent; and for guarantees it is the total of the sums paid in fulfilment of any guarantees, less any amounts reimbursed to the Treasury. If there is any outstanding expenditure that is not covered by these valuation provisions, the Treasury must make arrangements for their valuation. Subsections (3) and (4) enable the Treasury to substitute a new limit for the amount of outstanding expenditure by order and the order must be made by a statutory instrument which is approved by resolution of each House of Parliament.
Commentary on Sections Section 18: Public-Private Partnerships – investment: limit