Consortium wins $900M tender to build, operate Wiri prison

Thursday 8th March 2012

SecureFuture, a consortium made up of Fletcher Building, Serco, and Spotless Facility Services, has won the contract to build, operate and maintain the government’s 960-bed Wiri prison in South Auckland.

Finance Minister Bill English and Corrections Minister Anne Tolley announced the public-private partnership today, saying the 25-year contract will be capped at $900 million, some 10 percent cheaper than its usual procurement process.

Fletcher will begin building the prison this year, and it’s expected to open in 2015. Serco will manage the prison, with financial incentives for reducing recidivism rates and penalties for failing to meet short-term integration targets. Spotless will maintain the facility.

“There is a demonstrated need for a new prison in Auckland to meet population projections,” Tolley said. “We also need the flexibility to respond to ageing capacity and other future pressures.”

Serco won the $300 million government contract to manage Mt Eden prison for 10 years, a jail of similar size to Wiri.

BusinessDesk.co.nz

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