Paxon acted as financial adviser to the Department of Corrections (New Zealand) to undertake a review of the Auckland South Corrections Facility.
Paxon advised on contractual obligations under a Public Private Partnership (PPP) at Auckland South Corrections Facility to deliver operations and maintenance services for a 25 year, $70 million per annum O&M contract.
Under the PPP, the private sector was responsible for financing, design, construction and ongoing operation, security and maintenance over a 25 year term.
Paxon assessed the financial capacity of the ongoing operations and maintenance contractor and recommended strategies to minimise the risk to the Crown.
Department of Corrections (NZ) Client
Auckland, New Zealand Location
$1.75 billion Project Value
Financial Adviser Role
As a result of Paxon’s assessment, the Department implemented a number of risk mitigating strategies and ongoing credit monitoring arrangements to reduce the overall risk to the Crown.