A new prison will be built on the site of the old Waikeria Prison, in the Waikato region, as part of Phase 2 of the NZ Government's Prison Capacity Programme. The new facility at Waikeria Prison will be delivered as a Public Private Partnership (PPP), with the Government approving the detailed business case for the new facility in November 2016. The total project value is approximately NZ$750 million.
The combined value of Phase 2 of the Prison Capacity Programme is NZ$1 billion, which includes the Waikeria Prison PPP, as well as the expansion of Northland Region Corrections Facility at Ngawha and a new accommodation block at Mt Eden Corrections Facility. The Prison Capacity Programme is being implemented to accommodate a growing prison population in New Zealand.
The new prison will have a capacity of 500 beds, with an additional 100 beds for a mental health facility. This is a significant downsize from the original plan of 1,500-bed capacity.
A private sector consortium partner will design, build and finance the new facility, as well as provide asset management and facilities maintenance services under a long-term 25-year performance-based contract. Responsibility for custodial, health, rehabilitation and employment activities will be retained by the Department of Corrections
Expressions of Interest (EOIs) closed in February 2017 and Request for Proposals (RFP) were released to the short-listed consortia in April 2017. In June 2018, a consortium comprising CIMIC Group companies Pacific Partnerships and CPB Contractors along with HRL Morrison & Co, Cushman & Wakefield and Honeywell, was announced as the preferred bidder for the New Zealand Waikeria Prison Public Private Partnership. In September 2018, CIMIC Group announced that it had reached contractual close with the NZ Government. The new facility is expected to open in 2022.
