CPB Contractors and Pacific Partnerships have been selected by the New Zealand Government as the preferred proponents to deliver the third New Zealand Schools PPP initiative.

The contract is anticipated by the New Zealand Ministry of Education to be worth more than NZD200 million (US$140 million).

Revenue to the CIMIC Group companies will be finalized at contract execution, which is expected in the coming months.

CIMIC Group’s role in the project spans design, construction and financing. Pacific Partnerships, together with HRL Morrison & Co managed PIP Fund 2 will provide financing for 25 years. Operational services will be performed by Spotless. CPB Contractors will deliver the design and construction in joint venture with Christchurch-based company Southbase Construction.

This third New Zealand Schools PPP initiative includes the design and construction of four new primary schools (three in Auckland and one in Hamilton) and the relocation and co-location of Shirley Boys’ High School and Avonside Girls’ High School in Christchurch, as well as operational services of the schools for 25 years.

The agreement is also expected to contain an expansion mechanism under which the Ministry of Education has the right to add additional schools to the project to the aggregate capital value of NZD200 million.

The project’s construction phase is scheduled to start in the coming months, with the schools set to open in 2019.

CIMIC Group Chief Executive Officer Adolfo Valderas said:

“CIMIC Group’s financial strength and diverse capabilities position us well to deliver and service enduring assets, such as schools, that meet our clients’ needs. We look forward to delivering a project of such importance to local families and communities and to working with the New Zealand Ministry of Education.”

Pacific Partnerships Managing Director Angel Muriel said:

“Through CIMIC Group’s PPP expertise and experience in complex social projects, we will deliver a seamless, end-to-end service, and high-quality assets of long-term value.”

CPB Contractors Managing Director Román Garrido said:

“Delivering new and upgraded social infrastructure is one of our core capabilities, and we continue to work with the New Zealand Ministry of Education towards innovative design and cost‐effective construction solutions to the benefit of this project.

“Our team will be engaging with local workers and businesses towards increased job and work opportunities as the project progresses.”