MegaProject 956: Financial close for NSW prison
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The Northern Pathways consortium has reached financial close for the New Grafton Correctional Centre (NGCC) project located in Australia.
NorthernPathways is a consortium of four companies which are local and international leaders in their fields: Serco – a leading operator of correctional facilities in Australia, New Zealand and the UK; John Holland – an Australian builder; John Laing – a British developer and operator; and Macquarie Capital – Australia’s recognised financial advisor in infrastructure and PPP projects.
Ser has recently announced that it has signed the contract and completed financial agreements to operate the project. Serco’s contract for operation is expected to commence in 2020. The estimated total contract value to Serco over a 20-year term is approximately AUD2.6 billion (US$1.8 billion).
NorthernPathways consortium, named preferred bidder last March, will design, build and operate NGCC in a Public Private Partnership for the NSW Government. The consortium will operate the facility under a licence arrangement from the State who retain ownership of the facility and all its equipment. The prison will inject more than AUD560 million into the local economy with 1,100 jobs created during construction phase and about 550 permanent jobs with Serco once operational. When completed, NGCC will be the largest correctional facility in Australia.
NGCC will consist of individual facilities holding three different categories of inmates safely, securely and entirely separately. It will include a 1,000-bed male maximum security facility; a 300-bed female maximum security facility; and a 400-bed male minimum security facility. Both the centre itself, and the programmes that inmates will participate in, are designed with the goal of reducing reoffending and making communities safer.
Rupert Soames, Serco Group Chief Executive, said:
“The contract award for NGCC clearly marks a further important expansion of our international Justice business, and by total contract value it also represents Serco’s largest ever contract. Serco already operates Australia’s current largest correctional facility, Acacia Prison, and at the heart of our custodial operations is the commitment to making a positive difference by safeguarding society and reducing reoffending. This contract demonstrates our strength in delivering best practice particularly in regard to rehabilitation, reintegration, education and training programmes, as well as innovation, world-class systems, recruitment and partnering.”