Sustainability loan boosts NZ schools PPP

A NZ$180m sustainability loan has been agreed for New Zealand’s third schools PPP bundle.

Morrison & Co, the private partner in the ShapEd consortium that won the contract in 2017, secured the loan, which is the first sustainability loan for a schools project in New Zealand.

The loan will support the continued delivery of the NZ Schools III PPP contract, which was for the design, build, construction and 25-year maintenance of five new schools in Auckland, Hamilton and Christchurch.

“The schools have been designed with sustainable outcomes as a key objective,” said Jon Collinge, sustainability director at Morrison & Co. “They target a reduction in energy consumption of between 25% and 40% compared to a standard schools reference model but our detailed modelling shows they have achieved around a 70% reduction.”

Morrison & Co worked with the Commonwealth Bank of Australia and CIBC to complete the loan financing.