Fletcher in consortium to build prison

The Rena crew took several shortcuts before hitting Astrolabe Reef, a report into the grounding has found. Photo / Joel Ford

Fletcher Construction is in the consortium to build the $300 million Wiri Prison in South Auckland.

The subsidiary of NZX-listed Fletcher Building is in the SecureFuture consortium awarded the contract to design, finance, build, operate and maintain the new 960-bed public private partnership (PPP).

The builder, with a forward order book of work standing at over $1 billion, said it would build the prison to be operated by Serco, which already runs the Mt Eden Corrections Facility.

The new Wiri prison will be maintained by Spotless Facility Services.

"Construction will start in the second half of this year, once the 25-year contract has been finalised. The prison is expected to open in 2015," Fletcher said.

"The exact price of the PPP contract will not be finalised until SecureFuture has completed negotiations, but the maximum potential cost of the 25-year contract is capped at $900 million - 10 per cent below the cost of procuring the prison through conventional means.

"The cost of the design and construction component also remains subject to negotiation but is expected to be in the order of $300 million."

Expansion of prisons in New Zealand is opposed by various groups. Fletcher Building shares closed yesterday down 4c at $6.60.