New public private partnership for schoolsEducation
The Government intends to build and maintain six new schools around New Zealand using a public private partnership (PPP), Education Minister Hekia Parata and Associate Education Minister Nikki Kaye announced today.
“A public private procurement model is an innovative and proven way to spend taxpayer money efficiently,” says Ms Parata.
“It offers the significant advantage of having professional facilities managers take care of school property, freeing up schools to focus on teaching and learning.
“The six schools in this project will be developed to meet population growth in Auckland and Hamilton, or as part of the Christchurch Schools Rebuild programme.
“We’re committed to investing in education and making sure schools have high-quality infrastructure to get the best learning outcomes. The use of PPPs for new schools and rebuild projects is a key part of our plan to achieve this.
“The Ministry of Education is now well versed in the use of PPPs, having already delivered Hobsonville Point Secondary and Primary schools under New Zealand’s first signed PPP contract.”
Ms Kaye says the six new schools will be built whether or not a PPP model is used, but together they make a viable PPP project that promises to deliver real benefits for taxpayers, teachers and students alike.
“The Ministry estimates the upfront cost of building these schools using conventional procurement would be between $150 million and $200 million,” says Ms Kaye.
“Using a PPP for this bundle of schools could deliver savings of three to eight per cent over the life of the project, compared to the way the Ministry usually procures and maintains new schools.
“In April this year, the Ministry signed a contract with consortium Future School Partners for a second PPP contract for four schools in Auckland, Canterbury and Queenstown. That contract will save an estimated $27 million over the next 25 years, which is enough to build two small primary schools.
“Over the past six months, the Ministry carried out a comprehensive market sounding exercise for the latest PPP project. Feedback from this helped shape the Ministry’s thinking about which schools should be included in the project.”
An invitation for expressions of interest will be issued by March 2016 for the design, construction, financing and facilities management of the new schools. They include three new primary schools in Auckland, one new primary school in Hamilton and the relocation and co-location of Shirley Boys’ and Avonside Girls’ high schools in Christchurch.
After expressions of interest are received, up to three consortia will be shortlisted and asked to respond to a Request for Proposal. Responses will go through a rigorous evaluation, and the Ministry aims to announce a successful consortium in early 2017.
More about the PPP model
- the private partner is responsible for designing, building, financing and maintaining the school property for a contracted term
- this effectively provides a guarantee on the buildings throughout the life of the contract
- the Ministry of Education pays the private partner quarterly
- provision of education remains the responsibility of the principal and board of trustees, and the Government retains ownership of land and buildings throughout the life of the contract
- addressing any property issues is the responsibility of the private partner