Corrections Minister Anne Tolley says a contract has been signed allowing the SecureFuture consortium to design, finance, build, operate and maintain the new 960-bed public-private partnership (PPP) prison at Wiri, South Auckland.
The new prison will deliver value for taxpayers and support the Government in reaching the target of a 25 per cent reduction in reoffending by 2017.
The 25 year contract is worth approximately $840 million, which is 17 per cent less than if the prison was procured through conventional means, representing a $170 million saving for taxpayers.
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.
“The PPP will allow Corrections to draw on the experience and expertise of SecureFuture’s international partners,” says Mrs Tolley.
“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.
“The new prison will increase capacity in an area where there is a need to meet population projections.
“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 ten per cent better than Corrections in reducing reoffending rates.
“The consortium will face financial penalties if it fails to meet custodial, rehabilitation and reintegration measures.”
The new prison will still operate within the current Corrections’ framework and all prisoners will remain the responsibility of the Chief Executive of the Department. It will have to comply with all relevant New Zealand legislation and international obligations.