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Serco consortium signs new prison contract with New Zealand Department of Corrections

Published: 11 Sep 2012

Serco Group plc (Serco), the international service company, announces today that its consortium has signed a new contract with the New Zealand Department of Corrections to provide and operate the innovative new prison at Wiri, South Auckland, New Zealand.

Under the contract, Serco will operate the prison for 25 years from when it opens in mid 2015. Serco will also work with its partners including Fletcher Construction, John Laing and Spotless on the full design, construction and financing of the prison. From date of opening, Serco's operating contract is anticipated to have revenues of approximately £15m a year with revenues in the pre-operational phase expected to total around £2m.

The design for the new 960-place male prison has drawn on Serco's international experience of operating prisons to ensure its construction will complement the innovative approach to addressing offending behaviour in a safe and secure environment.  The prison will work to reduce reoffending on a payment by results basis; providing rehabilitation programmes based on international research, using innovative technology and working with family and community groups to help reintegrate offenders on release.  In particular, Serco will implement an approach to achieving effective outcomes with Maori prisoners.

Serco is a leading international operator of custodial services including the management of Mount Eden Corrections Facility in Auckland New Zealand. It also operates two prisons in Australia and started operating its sixth prison in the UK, HMP Thameside, earlier this year.

Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted to have been selected by the New Zealand Government to provide and operate the new prison at Wiri. This is an exceptional opportunity to deliver our innovative, cost-effective approach to the rehabilitation and reintegration of offenders in a secure setting which will be custom-built for the purpose.  We look forward to working closely with our consortium partners, the Department of Corrections and in conjunction with Mana Whenua to reduce reoffending and protect the local community. Serco's selection for this important contract is further evidence of our growth in the region and continued ability to use our international experience to deliver innovative solutions that meet the needs of our customers."