Partnering with the private sector

The redevelopment of the maximum security facility is being procured under a Public-Private Partnership (PPP).

What is a PPP?

A PPP or public–private partnership (PPP) is a partnership between the Government and the private sector.

What is the scope of this PPP?

For this project our private sector partner will be responsible for designing, building and financing the new maximum security facility as well as Asset Management and Facilities Maintenance of Auckland Prison for 25 years (the new maximum security facility and Auckland West). The PPP excludes custodial operation of the facility, this will be retained by the Department.

The consortium will include a construction partner, design team, banks and other investors and specialist asset management, facilities maintenance and security services providers. The operation of the prison and custody of prisoners will continue to be carried out by Corrections. This differs to the PPP option for the new Auckland South Corrections Facility (ASCF) at Wiri, which is a full custodial PPP with Serco being responsible for the operation of the new prison.

Why use a PPP?

A PPP will allow Corrections to use private sector expertise so that new ideas and innovations can be applied to this project, while delivering value for money. While this PPP will not include the operation of the maximum security facility, innovations in building design and whole-of-life asset management will introduce fresh thinking. These innovations will benefit Auckland Prison, and where possible, could be transferred to the wider prison network.

What happens if the quality or prices of bids do not meet expectations?

The Government retains the right to revert to traditional means of procurement if that would provide the best value for money and best services for taxpayers.

Do any other government agencies use PPPs in New Zealand?

Both the Ministry of Education and the Ministry of Transport are working with the private sector to deliver infrastructure services.

How many PPPs is Corrections involved in?

Currently Corrections is involved with two PPPs.

  • The Auckland Prison PPP covers the design, finance, construction and maintenance only – Corrections retains responsibility for the operation.
  • The Auckland South Corrections Facility (ASCF) PPP is a full custodial PPP, which means that SecureFuture in addition to designing, financing, construction and maintaining ASCF they will also operate the prison. SecureFuture have subcontracted Serco to operate ASCF.