CIMIC Group companies Pacific Partnerships and CPB Contractors, with their consortium partners, have reached contractual close with the New Zealand Government 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.
Revenue to CIMIC Group is approximately NZ$750 million, with construction having commenced through an early works agreement and the new Waikeria facility set to open in 2022.
CIMIC Group Chief Executive Officer Michael Wright said: "Our integrated approach to PPP projects is based on our end-to-end capabilities across a project’s lifecycle. Utilising our technical and operational expertise, and our financial strength, we will work in partnership with the Department of Corrections to deliver a high-quality facility of long-term value for New Zealand."
Pacific Partnerships Managing Director Martin D’Uva said: "Pacific Partnerships is now delivering three PPPs in New Zealand across the education, transport and corrections sectors. The Waikeria Prison PPP allows us to continue delivering whole-of-life project solutions, operational performance and value for all stakeholders."
CPB Contractors Managing Director Juan Santamaria said: "We have been operating in New Zealand for more than a decade, boosting employment and business opportunities to the benefit of communities, our clients and the industry. We will ensure that our design and construction solutions meet the state-of-the-art requirements for the Department of Corrections."
CIMIC Group companies Pacific Partnerships and CPB Contractors are joined by consortium partners HRL Morrison for financing, Cushman & Wakefield in providing facilities services and electronic security services provider Honeywell.
The Waikeria Corrections and Treatment Facility will be operated by the Department of Corrections and will deliver accommodation for 500 prisoners, along with a 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 program to deliver a more effective and humane justice system.
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