Kiwi builder in running to nab major Australian prison job

One of New Zealand's biggest builders is in a group short-listed for a A$405 million ($499 million) Australian prison job.

Hawkins Construction, owned by Auckland's McConnell family, is part of the preferred consortium for a Victorian public-private partnership (PPP).

The Aegis Correctional Partnership, one of three parties short-listed for the project, wants to design, build, finance and maintain a 350-bed expansion of the Ararat Prison over a 25-year term.

Ararat Prison, 240km northwest of Melbourne, will be extended by 350 beds to reach 700 cells when finished in two years.

New Zealand's biggest prison job is by Fletcher Construction at Mt Eden, where it won a $216 million job. Cells have risen over the Southern Motorway and Fletcher is well-advanced on that new eight-level 240-cell block.

It is also building a neighbouring four-level 120-cell block on the site.

These two, on the northern side of Auckland Grammar School's lower sports fields, will eventually replace the existing Mt Eden Prison.

Chris Hunter, Hawkins' chief executive, said public-private partnerships offered benefits on both sides of the Tasman and he cited experience in 2006 building the 335-inmate Otago Correctional Facility and work now on Rimutaka Prison near Wellington.

"This major contract award recognises the skills Hawkins offers in designing and building specialised facilities such as prisons, schools and hospitals. Our strong work to date on prisons means that we are ideally placed to carry out this work.

"We are also excited to see that the New Zealand Government is pushing ahead with PPPs, both through the National Infrastructure Unit holding discussions with the market and via the recent Government announcement of its intention to procure the new prison at Wiri as a PPP.

"Hawkins has been investing time and resources in this area for a number of years. We have done our due diligence on PPPs and are in a good position to add considerable value.

"We have also been proactive in following the Wiri project, which will be New Zealand's first PPP. We have established a dedicated Wiri PPP team, with experience from various PPP backgrounds, and we have aligned ourselves with a strong consortium to develop winning solutions," Hunter said.

The Victorian job is due to start in June and be finished by December 2012. Half the prison is for sex offenders and half for special needs prisoners.

The medium-security prison has the capacity for 374 inmates.

Aegis partnership

* Bilfinger Berger Project Investments.

* Commonwealth Bank of Australia.

* St Hilliers Contracting.

* Hawkins Construction.