By Gareth Vaughan
The ANZ, BNZ and Accident Compensation Corporation (ACC) are three of the key funders lined up for a Macquarie Capital-advised consortium that's one of three short-listed by the Department of Corrections to build and operate a prison through a public-private partnership (PPP) at Wiri.
Duncan Olde, New Zealand division director at Macquarie Capital, told interest.co.nz the Secure Future Consortium which Macquarie is acting as financial adviser to, has secured the ACC and John Laing Investments as independent equity providers, and ANZ, BNZ and various international banks with PPP expertise as debt providers should their bid be successful.
Other members of the Secure Future Consortium include Serco Australia, Fletcher Building's Fletcher Construction unit, and Spotless Services.
It's up against the NZCS Consortium whose financial adviser is Lend Lease unit Capella Capital and also includes the GEO Group Australia Limited, Hawkins Construction and Honeywell. The GLM Consortium, the third short listed consortium, has KPMG as its financial adviser and includes G4S Australia and New Zealand, Leighton Contractors and Mainzeal Property and Construction.
New names may yet be added with each consortia still finalising its membership. The Wiri mens prison will be New Zealand's first social infrastructure PPP.
According to the Department of Corrections, the successful consortium will design, finance, construct and manage the new prison. The Department will provide regular payments to the consortium over the 25 year life of the contract.
These payments will cover the costs incurred by the consortium in constructing and managing the prison. The Department won't yet put a dollar figure on how much the government plans to spend on the project or how much it'll cost overall, with a spokesman saying its work with the three short listed consortia will determine the cost of the prison's construction.
Department of Corrections staff plan to meet with representatives from each consortium several times over the next few months with their final proposals due in early August and plans for a finalised contract to be in place by July next year. At the end of the 25-year contract, the prison will revert to Crown ownership.
* This article was first published in our email for paid subscribers this morning. See here for more details and to subscribe.