Pacific Partnerships and CPB Contractors, both belonging to the Cimic Group of Australia, have been selected by the New Zealand government to lead a consortium to deliver the Waikeria Corrections and Treatment Facility Public-Private Partnership (PPP) project.
While the Cimic Group led the development of the NZD750m ($527m) project, Pacific Partnerships led the consortium formation and provided equity financing for 25 years, and CPB Contractors undertook design and construction of the facility. The Cimic Group is delivering most of the works.
Commercial arrangements are being worked out and Cimic Group revenue will be finalised at contract execution in the third quarter of 2018.
The new Waikeria facility is set to open in 2022.
Cimic Group CEO Michael Wright said: “With an integrated team approach, Cimic’s industry-leading businesses are experienced in the development and delivery of major social infrastructure PPP projects.
“Our New Zealand team has been working with the client on various scenarios that will ensure the Department of Corrections achieves its objectives for improved education, rehabilitation and enhanced mental health services.
“Utilising our local understanding of the market and our international expertise in project development and engineering, our focus is on delivering a superior facility that complements Correction’s current operating model, enabling the government to achieve its required outcomes over the long term.”
The new facility will be designed and constructed by CPB Contractors and electronic security services for the facility will be provided by Honeywell.
Over a 25-year period, Pacific Partnerships and HRL Morrison & Co will provide financing and management, and Cushman & Wakefield will provide asset management and facilities maintenance.
The Waikeria Corrections and Treatment Facility will accommodate 500 prisoners. It will also include secure mental health unit that will provide care for additional prisoners.
The new facility will be constructed on the site of the existing Waikeria Prison in the Waikato region of New Zealand. It is being established as part of the government’s programme to deliver a more effective and humane justice system.