Serco 'preferred bidder' for Australia's largest prison
International services company Serco Group was named ‘preferred bidder’ to operate the New Grafton Correctional Centre (NGCC) in New South Wales, Australia on Thursday.
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The FTSE 250 firm formed part of the NorthernPathways consortium which will design, build and operate NGCC in a public-private partnership for the NSW Government.
When completed, NGCC will be the largest correctional facility in Australia.
“Serco's contract for operation is expected to commence in 2020,” the board confirmed in a statement.
“The estimated total contract value to Serco over a 20-year term is approximately AUD 2.6bn (equivalent to approximately £1.6bn).”
Serco said the consortium would now enter into final contract negotiations and a further announcement will be made at the appropriate time.
The company had been looking to rebuild its reputation as a prison operator in the region, since being stripped of its contract to run the Mount Eden Corrections Facility in April 2016.
Allegations and evidence had surfaced at the time that Serco staff were at least aware of assaults and organised fight clubs happening within the walls of the remand facility in Auckland, New Zealand.