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(1)An authorisation given by virtue of an order under section 70 of the [1994 c. 40.] Deregulation and Contracting Out Act 1994 (authorisation by local authority of exercise by another person of functions of authority for period not exceeding ten years) may specify that it is to be for a period exceeding ten years if it is given in connection with a certified contract.
(2)But an authorisation given in connection with a certified contract may not by virtue of subsection (1) specify that it is to be for a period exceeding the shorter of—
(a)the period for which the contract is to operate, and
(b)forty years.
(3)For the purposes of this section an authorisation is given in connection with a certified contract if—
(a)the authority by which it is given is a local authority for the purposes of this Act,
(b)the authority and the authorised person are parties to the contract, and
(c)the authorisation is given to enable the authorised person to perform or better perform his obligations under the contract.
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