Allens

Construction & Major Projects

Client Update: New Zealand's first prison public private partnership

15 April 2010

In brief: Last month we reported on the opportunities arising out of the New Zealand Government's National Infrastructure Plan. In this Client Update, Partner Emma Warren (view CV) and Senior Associate David Donnelly report on the Wiri Prison PPP, the first prison public private partnership in New Zealand.

Announcement of Wiri Prison PPP

The New Zealand Government has announced its intention to commission a new prison at Wiri in South Auckland as a public private partnership (PPP).

The proposed 25-35 year concession will include the provision of custodial services as part of the operation of the 1000-bed male prison within the current Corrections framework. The New Zealand Government has also signalled a desire to see Maori representation, or Maori-specific services, incorporated into the successful bid.

The expected timeline for the project as is follows:

  • expressions of interest – fourth quarter, 2010;
  • request for proposals – first half, 2011;
  • commencement of construction – second half, 2012; and
  • commencement of operations – end of 2014.

The New Zealand Government's press release1 also notes that the Government is considering PPPs for other social infrastructure, and expressly mentions the education sector.

Footnotes
  1. Available through the New Zealand Government's website at http://www.beehive.govt.nz/release/nz039s+first+ppp+prison+be+built+wiri

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