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12 September 2012

Securefuture consortium signs contract to build and operate innovative new prison at Wiri

 John Laing, as part of the SecureFuture consortium has signed a contract to build and operate the new prison at Wiri, South Auckland.  The new public-private partnership (PPP) facility will be designed, financed, built, operated and maintained by the consortium on behalf of the New Zealand Department of Corrections and will focus on rehabilitation and making communities safer. 

SecureFuture is made up of equity participants John Laing, InfraRed and The Accident Compensation Corporation along with Fletcher Construction, who will design and construct the prison, Serco, who will operate it, and Spotless Facility Services, responsible for maintenance. The consortium is advised by Macquarie Capital. The prison is John Laing’s first investment project in New Zealand.

Gary Lucas, John Laing Director of Infrastructure Investments, said: “It is extremely exciting for us that the start of construction is imminent on the new prison at Wiri, not only because this is testimony to all the hard work that has been put into financial close on the facility but also because this is a significant milestone in the development of the John Laing business in the Asia Pacific region.”

The prison will run innovative programmes to tackle specific causes and types of offending, including embracing the concept of Kaitiakitanga in conjunction with Mana Whenua to assist in exercising their guardianship of the Wiri site and its surrounds. Providing meaningful education and job training, as well as promoting links with family, whānau and the wider community, will help prisoners to stay away from crime when they are released.

In-cell technology will increase the time prisoners can spend learning while in custody, allow them to take more responsibility for themselves, and help them to stay in touch with family. ‘Through-the-gate’ support will be given to prisoners on release through a volunteer mentoring scheme and integration with the Probation service and Parole Board. A Community Liaison Office will provide a range of assistance including alcohol and drug relapse prevention support, money management, debt counselling, accommodation services and a work placement programme.

Contract signing follows the Government’s announcement in March that the consortium was their preferred bidder. Senior debt for the project will be provided by ANZ National Bank Ltd, BOS International and Bank of New Zealand.

 The net present value of the contract is worth approximately $840 million, which is 17 per cent less than if the prison was procured through conventional means.


Media Contact:

Camilla Cunningham,
Teneo

T: +44 20 7420 3186
E: JohnLaing@teneo.com