Learning Infrastructure Partners has entered into a contract to provide New's Zealand's first PPP for the design construction, finance and maintenance of Auckland's Hobsonville Point primary and secondary schools for the next 25 years.
The consortium is made up of experienced school service providers including Hawkins Construction, Programmed Facility Management and the Public Infrastructure Partners fund (PIP Fund). The design work has been carried out by ASC Architects in conjunction with Perumal Pedavoli Architects, Holmes Consulting Group and Aecom.
Finance has been provided by Westpac and the PIP Fund. The PIP Fund is a group of local investors including the New Zealand Superannuation Fund, the New Zealand Social Infrastructure Fund and a number of community trusts. Learning Infrastructure Partners is a great example of New Zealanders investing in the development of social infrastructure that will serve many generations to come.
Competition to provide the new schools within a PPP framework was considerable and Learning Infrastructure Partners was selected on the basis of their innovative design, willingness to underwrite the performance of their schools for 25 years and their price. The final fixed cost of the schools is believed to be approximately 1% below budget and delivery risk sits firmly with the private sector.
Steven Proctor, Executive Director of the PIP Fund says that they are delighted to be involved in the first NZ PPP project to be officially signed.
“The Ministry of Education challenged us to provide them with two state-of-the art schools and to maintain them to a high standard throughout their working life. Learning Infrastructure Partners has produced two innovative designs that meet this requirement. One of the great strengths of the PPP form of procurement is that it forces the private sector to take responsibility for the assets they create. If a PPP school starts to leak after ten years the government will stop our payments. If a PPP school is delivered late, the government only need pay for it once it is complete. Under traditional procurement this is not the case” says Proctor.
Chris Hunter, CEO Hawkins Construction, is confident that these new buildings will inspire children and teachers.
“These schools will provide a modern educational environment that will enhance the new community on Hobsonville Point. The PPP model will free the schools’ principals from the distraction of managing property so that their core focus will be on educational outcomes”, says Hunter.
Hobsonville Point Primary School will open at the beginning of 2013 and Hobsonville Secondary School will open early 2014.