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Serco signs new prison management contract in Queensland valued at approximately A$100m

Date: 28 Jul 2011

Serco Group plc (Serco), the international service company, announces today that it has signed a new five-year contract with the Queensland Department of Corrective Services to manage and operate the new 300 bed high-security South Queensland Correctional Centre (SQCC) in Gatton, transferring operations from Borallon Correctional Centre near Brisbane.

The contract, which will commence on 1 January 2012, is valued at around A$100m over five years, with an option to extend to ten years. This replaces and extends a similarly valued five-year contract, due to end in January 2013, to manage Borallon Correctional Centre which is one of the oldest facilities in Queensland and is being temporarily decommissioned as part of a wider reorganisation of the State's prisons.

Under the contract, we will ensure the safe and secure management of the facility and continue our work to protect the public by reducing reoffending. Our approach includes effective antibullying, self-harm minimisation, violence reduction, drug, health, and resettlement strategies, as well as culturally appropriate services and programmes for Aboriginal and Torres Strait Islander risoners.

We will draw on our experience and innovative approaches developed in managing Borallon Correctional Centre and other prisons in Australia, New Zealand and the UK, and will benefit from the design and technology advances of the new facility.

Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted that the Queensland Department of Corrective Services has chosen to continue their partnership with Serco with the contract to operate the new Southern Queensland Correctional Centre. This contract builds on our previous success and track record at Borallon Correctional Centre, as well as Acacia Prison in Western Australia and our experience in providing services integral to the criminal justice system in the UK."

Borallon Correctional Centre won a 2011 Australian Business Award for Environmental Sustainability, recognising its leadership and commitment to the enhancement, preservation and protection of the environment. The prison was also Highly Commended for Offender Education in this year's Minister's Awards for Excellence in Community Safety, and described as achieving excellent results for offenders, their families and Queensland Corrective Services.

This year, Serco has also signed contracts to operate Mount Eden Corrections Facility in Auckland, and to provide Court Security and Custody Services in Western Australia, where the State's Inspector of Custodial Services described Serco-run Acacia as "one of the best performing prisons".

For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 208 334 4122
Dominic Cheetham, Director of Corporate Communications T +44 (0) 208 334 4334
Marcus De Ville, Head of Media Relations T +44 (0) 208 334 4388

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Last Updated: 28 Jul 2011