NZ preps prison PPP

The New Zealand Department of Corrections is preparing a business case for a new prison to be built under a PPP.

At the end of November, the Cabinet will consider the detailed business case for formal approval of a new 1,500 bed facility at the existing Waikeria Prison in Waikato.

Corrections is recommending a design, build, finance, maintain (DBFM) approach for the new facility, which will be operated by the government.

Expressions of interest will be sought in January 2017, with up to three consortia shortlisted and a preferred bidder in late 2017. Construction is expected to commence in mid-2018 and it is anticipated that the new facility will receive its first prisoners in 2020.

These plans are part of the $1bn second phase of the government Prison Capacity Programme, which is to add 1,800 beds to existing prisons.

Corrections Minister Judith Collins said: “Getting this proposal underway now will help ensure the growth is well planned, and that the prison network can help keep our communities safe in the future.”

The department signed a PPP contract for Auckland Prison in 2015.