First joint venture school coming up

The first Public Private Partnership (PPP) entity in the schools sector will become an eventuality at Hobsonville next year.

Associate Minister of Education Craig Foss signed an agreement with Learning Infrastructure Partners, which will be responsible for the design, construction, finance and maintenance of Hobsonville Point primary and secondary schools for the next 25 years.

Learning Infrastructure Partners is a consortium of firms with significant experience in designing, building and maintaining New Zealand schools.

The design work has been carried out by ASC Architects and Perumal Pedavoli Architects, the schools will be built by Hawkins Construction and maintained by Programmed Facility Management.

While the Primary School will open early next year, the Secondary School is expected to become functional in 2014.

Mr Foss described the Agreement as “an exciting development” for Hobsonville Point and its future learners.

“The Board of Trustees and school leadership will not have to worry about maintaining school property as that will be the responsibility of the private partner. Having a private partner managing school facilities will give the school Board and teaching staff more time to focus on student learning and achievement,” he said.

According to Mr Foss, the Crown was no longer exposed to design and construction risks under the PPP.

“These are the responsibilities of the private partner who must fix them promptly or face financial penalties,” he said.

PPP School Fact Sheet

For a school, Public Private Partnership (PPP) means the private sector designs, builds, finances, and maintains the school property through a long-term contract

Provision of educational services remains the responsibility of the board of trustees

The Boards of Trustees and school leadership will not have to worry about maintaining school property, which becomes the responsibility of the private partner.

Maintenance of school facilities is carried out by professionals to an agreed standard.

Greater price certainty for taxpayers through an accurate and transparent assessment of whole-of-life costs.

PPPs are based on a ‘pay for performance’ model.

The Crown is no longer exposed to design and construction risks.

There will be no significant changes for students or teachers in terms of education

Since 2007, the Education Ministry has procured new school property through a single-line of accountability, guaranteed maximum price model. The Ministry tenders for a consortium to undertake the design and construction of new schools under a two-stage contract to design and build. At the completion of the contract, the Government owns the asset and is responsible for its maintenance.

PPPs would not be suitable for all schools and they will only be used when they make sense. The Ministry will decide whether a PPP is suitable on a case by case basis.

What are the safeguards?

The contract includes a series of key performance indicators. If these are not met, deductions will be made from the payments to the private sector partner. Ultimately, the Crown will retain the right of ‘step in’ and termination of the agreement should dispute resolutions fail to remedy underperformance.


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