CIMIC Group companies Pacific Partnerships and CPB Contractors are the leaders of a consortium selected by the New Zealand Government as the preferred proponent to deliver the Waikeria Corrections and Treatment Facility Public Private Partnership (PPP) project.
CIMIC Group has led the development of the project, with Pacific Partnerships leading the consortium formation and providing equity financing for 25 years, and CPB Contractors undertaking design and construction of the facility.
The total project value is approximately NZ$750 million, with CIMIC Group delivering the majority of the works. Commercial arrangements are at an advanced stage, and revenue to CIMIC Group will be finalised at contract execution, expected in quarter three 2018, with the new Waikeria facility set to open in 2022.
CIMIC Group Chief Executive Officer 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.”
Pacific Partnerships Managing Director Martin D’Uva said: “Working across the CIMIC Group, our Pacific Partnerships and CPB Contractors teams have been focused on providing a seamless approach to this project, ensuring that our local and international experience delivers outstanding value and operational performance over the life of the PPP, our third PPP so far in New Zealand.
“Our teams have been operating in New Zealand for more than a decade, and our approach to innovate and deliver the benefits of whole-of-life financing, design and engineering for this important project will ensure its success for our client.”
CPB Contractors will design and construct the new facility. Over a 25-year period Pacific Partnerships, together with the HRL Morrison & Co, will provide financing and management, with asset management and facilities maintenance performed by Cushman & Wakefield. Honeywell will provide the electronic security services for the facility.
The Waikeria Corrections and Treatment Facility will deliver accommodation for 500 prisoners, along with a world class secure mental health unit providing care for additional prisoners.
The new facility will be built on the site of the existing Waikeria Prison in the Waikato region (upper North Island) of New Zealand, as part of the New Zealand Government’s programme to deliver a more effective and humane justice system. /media release