23Obligations before entering into contracts

1. When considering and negotiating a contract under section 22, a water service provider must—

2. determine whether the proposed contract is a significant contract under section 24; and
3. consider all current and anticipated future regulatory requirements in relation to the water services to which the proposed contract relates; and
4. consider whether the contract should provide for compliance with those requirements.

5. Before entering into a contract that a provider determines to be a significant contract, it must—

6. identify and assess options and undertake consultation in accordance with sections 30 to 32; and
7. if it is a water organisation, also consult its shareholders and obtain their approval of the proposed contract.

8. Before entering into a contract that a provider determines to be a significant contract because it will create a public-private partnership, a water service provider must, in addition,—

9. have regard to any relevant procurement rules and guidance issued by central government; and
10. obtain advice from—
    1. any central government agency whose role includes advising on public-private partnerships (if its role is applicable to water service providers); or
    2. appropriate experts in the private sector.

11. In this section and section 24, public-private partnership means a long-term contract for delivering a water service, where—

12. providing the service requires constructing new water services infrastructure or enhancing existing water services infrastructure; and
13. the construction or enhancement is financed from external sources on a non-recourse basis; and
14. the water service provider acquires or retains full ownership of the infrastructure.