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New schools to be built under new PPP

NZ Newswire logoNZ Newswire 8/04/2017

The government has signed a $220 million contract to build three new primary schools and two relocated secondary schools via a public private partnership.

ShapEd consortium will design, finance and construct the schools, as well as maintain them for 25 years, says Associate Education Minister Nikki Kaye.

It's the third PPP used by the government to build new schools and ShapEd was revealed to be the preferred bidder in March. The schools will open in 2019.

It will build Kumeu/Huapai Primary School and Flat Bush South East Primary School in Auckland, Sylvester Primary School in Hamilton and Shirley Boys' High School and Avonside Girls' High School in Christchurch.

The two high schools were damaged in the Christchurch earthquakes and were in different suburbs but will be located together at the former QEII Park site in the city's east.

PPPs have been controversial because while they save governments money upfront, they have costs that last for 25 years.

Ms Kaye says this PPP 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.

By removing the burden of school property management from teachers and boards, PPPs allow schools to focus their time on students' learning, she says.

Also included in the contract are satellite special learning schools at the schools being built.

"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," Ms Kaye says.

The ShapEd consortium includes Morrison & Co PPP GP II Ltd and Pacific Partnerships Pty Ltd as equity providers.

CPB Contractors Pty Ltd and Southbase Construction Ltd will act as lead construction contractors, Spotless Facility Services (NZ) Ltd as lead facilities management contractors and ASC Architects as lead design consultants.

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