CIMIC Group companies Pacific Partnerships and CPB Contractors have been awarded the third New Zealand Schools PPP initiative by the New Zealand Government.

CIMIC Group’s role in the project spans design, construction and financing. The contract will generate revenue to CIMIC of approximately NZD113 million over the design and construction period.

CPB Contractors will deliver the design and construction program as part of a 60:40 joint venture with Christchurch-based company Southbase Construction.

Pacific Partnerships, together with HRL Morrison & Co managed PIP Fund 2, will provide financing for 25 years. Operational services will be performed by Spotless.

This third New Zealand Schools PPP initiative includes the design and construction of four new primary schools (three in Auckland and one in Hamilton) and the relocation and co-location of Shirley Boys’ High School and Avonside Girls’ High School in Christchurch, as well as operational services of the schools for 25 years.

The agreement contains an expansion mechanism under which the Ministry of Education has the right to add additional schools to the project. The project’s construction phase is scheduled to start in July 2017, with the schools set to open in 2019.

CIMIC Group Chief Executive Officer Adolfo Valderas said:

“It is our privilege to contribute CIMIC Group’s financial strength and diverse capabilities to deliver this schools initiative for the New Zealand Ministry of Education and for local families and communities.”

Pacific Partnerships Managing Director, and CIMIC Group Chief Financial Officer, Angel Muriel said:

“CIMIC Group’s PPP expertise and social infrastructure experience will deliver a seamless, end-to-end service, and high-quality assets of long-term value.”

“To ensure sustainable and successful delivery, we are focused on maximising the participation of local businesses and enhancing local workforce capabilities, which will benefit future schools initiatives and broader regional infrastructure projects.”