Govt calls for tenders on PPP prison

Infrastructure Minister Bill English. File photo / Mark Mitchell

The Government has progressed plans to establish a new privately run prison to the next stage and called for expressions of interest for design, construction and operation.

Amid concern from opposition parties and unions, the Government has been advancing plans to build a new prison under a public-private partnership at Wiri in south Auckland.

Infrastructure Minister Bill English and Corrections Minister Judith Collins said Cabinet this week gave the green light to an arrangement which would cover the design, construction, financing, maintenance and operation of a new prison.

The ministers said officials met over the past few months with potential market participants and received a positive response.

"An invitation for expressions of interest will now be issued to the market via the Government Electronic Tender Service."

The Government has been exploring the use of private consortiums to build and run public institutions, including prisons and schools, and Mr English said when such arrangements were considered beneficial they would be followed through.

"The Department of Corrections has demonstrated that in this case it does make sense and that there is an opportunity to introduce innovation that will be beneficial across the wider prison network."

Mr English said the Government wanted value for money for taxpayers, and the PPP would allow it to pay for actual delivered service performance.

"International experience suggests that using an appropriately structured PPP for the new prison will offer savings over conventional procurement methods. In addition it is expected that this PPP will enhance public safety and improve rehabilitation outcomes."

Labour has said there is evidence overseas that such arrangements don't produce improved results due to the profit motive - something which the unions say can only result in the erosion of staff conditions and increased safety concerns.

Ms Collins said the new prison would ensure there were enough beds to cope with the future prison population.

"The successful operator will be required to deliver innovative rehabilitation and reintegration services. It will also be critical that they can meet the needs of Maori and provide effective Maori-specific services."

Only consortia with experienced and reputable builders and prison operators would be considered, she said.

The closing date for expressions of interest is December 22 and a request for proposals was expected to be issued to short-listed parties in March next year, with preferred bidder selection expected by October.

There would be a single contract for all stages under a 25 year contract.

- NZPA