$220m contract signed for three PPP schools

Nikki Kaye

Wellington, April 8, 2017

A contract has been signed with the ShapEd Consortium to deliver the third schools public private partnership (PPP).

The ShapEd consortium is Morrison & Co PPP GP II Ltd and Pacific Partnerships Pty Ltd as equity providers; CPB Contractors Pty Ltd and Southbase Construction Ltd as lead construction contractors; Spotless Facility Services (NZ) Limited as lead facilities management contractors with ASC Architects as lead design consultants.

Successful negotiations

I am pleased to confirm that negotiations between the Ministry of Education and ShapEd, who we announced in March as the preferred bidder, have been successful.

This contract for $220 million will deliver three new primary schools and two relocated secondary schools which will all open in 2019.

It has been estimated that using a PPP for this bundle of schools could achieve savings of between three and seven per cent, or up to $15 million, over the term of the contract, compared to a traditional procurement process.

The Schools

The three primary schools are:

Kumeu/Haupia Primary School, in Auckland

Flat Bush South East Primary School, in Auckland

Sylvester Primary School, in Hamilton.

The relocated schools are Shirley Boys’ High School and Avonside Girls’ High School, which will be rebuilt on a co-located site in Christchurch.

Also included in the contract are four special education satellite schools:

Arohanui School, at Kumeu/Huapai

Mount Richmond School, at Flat Bush South East

Hamilton North School, at Sylvester School

Ferndale School, at Shirley Boys’ and Avonside Girls’.

The consortium will design, finance and construct the schools, as well as maintain them for 25 years.

The contract also allows for further schools to be added. A sixth school, Scott Point Primary School in Auckland, has already been approved for inclusion at a later date, and is expected to open in Auckland in 2020.

Excellent alternative

PPPs are an excellent alternative to the traditional method of building and maintaining schools. By removing the burden of school property management from teachers and Boards, PPPs allow schools to focus their time on students’ learning.

The first two PPPs have shown that this model can deliver great quality schools.

Hobsonville Point has won design awards, and Ormiston Junior College in Auckland and Rolleston College and Haeata Community Campus in Canterbury are all fantastic new schools delivered under a PPP. Wakatipu High School is also on track to open in 2018.

I am confident this latest PPP will deliver world class design, construction and facilities management as well as overall value for money.

Nikki Kaye is Associate Minister of Education of New Zealand.

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