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Thu May 30 2024

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NZ signs £425m PPP prison contract

11 Sep 12 The SecureFuture consortium has signed a contract with New Zealand’s government for a new 960-bed public-private partnership (PPP) prison at Wiri, South Auckland.

The contract covers the design, financing, building, operation and maintenance of the new prison for a 25-year period. It is worth approximately NZ$840m (£425m) million, which the government said is 17% less than if the prison was procured through conventional means, representing a NZ$170m saving.

Fletcher Construction will build the new facility which will be operated by Serco and maintained by Spotless Facility Services. Construction will begin soon, with the prison set to open in 2015.

“It will provide a modern prison, with improved facilities and services, and will be strongly focused on rehabilitating prisoners and reintegrating them back into the community,” said corrections minister Anne Tolley. “It will also give a huge boost to the Auckland economy. SecureFuture expect close to 300 staff will be employed to operate the prison, while up to 1000 workers could be involved in its construction.”

The contract has strong performance incentives, and SecureFuture must perform 10% cent better than Corrections in reducing reoffending rates. “The consortium will face financial penalties if it fails to meet custodial, rehabilitation and reintegration measures.”

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