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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 ÂÜÀòÔ­´´ will build the new facility which will be operated by Serco and maintained by Spotless Facility Services. ÂÜÀòÔ­´´ 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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