Commercial and financial close for NZ schools PPP project

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Commercial and financial close for NZ schools PPP project

New Zealand Ministry of Education and Future Schools Partners (FSP) have achieved commercial and financial close for NZ$298 million public private partnership (PPP) contract to build four schools.

FSP also includes Morrison & Co's Public Infrastructure Partners fund (PIP Fund) which is providing equity, Programmed Facility Management, who are providing facility management and ASC Architects, who is leading the design team. Hawkins Group will design and construct the new facilities.

The project involves the development of the following schools:

  • Ormiston Junior College, Auckland, will cater for years 7 to 10 and be built on a 5 ha site. Due to open in term 1, 2017, it will have capacity for 1,130 students.
  • Aranui Community Campus, Christchurch, will cater for years 1 to 13 and be built on a 9.3 ha site. Due to open in term 1, 2017, it will initially have capacity for 1,100 students, and future expansion capacity for 1,800 students.
  • Rolleston College, Christchurch, will cater for years 9 to 13 and be built on a 6.3 ha site. Due to open in term 1, 2017, it will initially have capacity for 1,100 students, and future expansion capacity for 1,800 students.
  • Wakatipu High School, Queenstown, will cater for years 9 to 13 and be built on a 7 ha site. Due to open in term 1, 2018, it will have capacity for 1,200 students.

Three of the schools, Ormiston Junior College, Aranui Community Campus and Rolleston College are new, while Wakatipu High School will replace an existing school but in a new location.

Under a PPP, the private partner is responsible for designing, financing, building and maintaining the school property for a period of 25 years.

The total project investment is estimated at NZ$200 million (US$150 million).

Education Minister Hekia Parata stated:

"The contract for the schools, which will be located in Auckland, Christchurch and Queenstown, was signed this week with building consortium Future Schools Partners. The public private procurement model is an innovative and proven way to spend taxpayer money efficiently. It also benefits teachers and staff, who can spend more time raising student achievement while the private partner looks after the buildings."

"All of the schools have been actively involved in setting their specific design requirements, and I'm sure each community is looking forward to seeing them built."

Education Minister Nikki Kaye says the latest PPP will provide four high-quality schools at a lower cost.

"If we'd used the traditional procurement approach for these schools, it could have cost approximately $27 million more over the next twenty-five years. That's the equivalent to the cost of building two small primary schools."

"The contract signing is exciting news and gives certainty to schools and communities that building work can now go ahead, with the three new schools due to open in 2017 and Wakatipu High School due to open in its new location in 2018. The schools will eventually cater for around 6000 students across New Zealand, who will enjoy outstanding, state-of the art facilities and the latest technology."

KPMG's Infrastructure team, led by Adrian Wimmers, supported the Ministry as lead financial and commercial advisor on this Public Private Partnership transaction from business case through to financial close.

DLA Piper has advised Hawkins Group Limited in the transaction.

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