Serco Group PLC Serco signs £1.5bn contract for NGCC (5649I)
20 June 2017 - 4:02PM
UK Regulatory
TIDMSRP
RNS Number : 5649I
Serco Group PLC
20 June 2017
Serco signs GBP1.5bn contract for New Grafton Correctional
Centre
20 June 2017
Serco Group plc
LEI: 549300PT2CIHYN5GWJ21
Serco Group plc ('Serco' or 'the Group'), the international
service company, is pleased to announce it has signed the contract
and completed financial agreements to operate the New Grafton
Correctional Centre (NGCC) in New South Wales, Australia. Serco
previously announced on 16 March 2017 that it had been named
Preferred Bidder on the project.
Serco is part of the NorthernPathways consortium which will
design, build and operate NGCC in a Public Private Partnership for
the NSW Government (the State). The consortium will operate the
facility under a licence arrangement from the State who retain
ownership of the facility and all its equipment. The prison will
inject more than AUD560m into the local economy with 1,100 jobs
created during construction phase and about 550 permanent jobs with
Serco once operational. When completed, NGCC will be the largest
correctional facility in Australia.
Serco's contract for operation is expected to commence in 2020.
The estimated total contract value to Serco over a 20-year term is
approximately AUD2.6bn (equivalent to approximately GBP1.5bn, based
upon the current exchange rate of 1 GBP = 1.68 AUD).
NGCC will consist of individual facilities holding three
different categories of inmates safely, securely and entirely
separately. It will include a 1,000-bed male maximum security
facility; a 300-bed female maximum security facility; and a 400-bed
male minimum security facility. Both the centre itself, and the
programmes that inmates will participate in, are designed with the
goal of reducing reoffending and making communities safer.
The contract draws on Serco's experience of managing
correctional facilities in the UK, New Zealand and elsewhere in
Australia. It will be the first time that Serco has managed a
correctional facility which includes women. NGCC has been designed
to incorporate a trauma-informed approach which supports the unique
concerns of females including a specialist centre of smaller-scale
cottage accommodation.
Rupert Soames, Serco Group Chief Executive, said: "The contract
award for NGCC clearly marks a further important expansion of our
international Justice business, and by total contract value it also
represents Serco's largest ever contract. Serco already operates
Australia's current largest correctional facility, Acacia Prison,
and at the heart of our custodial operations is the commitment to
making a positive difference by safeguarding society and reducing
reoffending. This contract demonstrates our strength in delivering
best practice particularly in regard to rehabilitation,
reintegration, education and training programmes, as well as
innovation, world-class systems, recruitment and partnering."
Ends
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386
227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386
226
About Serco
Serco is a leading provider of public services. Our customers
are governments or others operating in the public sector. We gain
scale, expertise and diversification by operating internationally
across five sectors and four geographies: Defence, Justice &
Immigration, Transport, Health and Citizen Services, delivered in
UK & Europe, North America, Asia Pacific and the Middle
East.
More information can be found at www.serco.com
Forward looking statements
This announcement contains statements which are, or may be
deemed to be, "forward looking statements" which are prospective in
nature. All statements other than statements of historical fact are
forward looking statements. Generally, words such as "expect",
"anticipate", "may", "should", "will", "aspire", "aim", "plan",
"target", "goal", "ambition" and similar expressions identify
forward looking statements. By their nature, these forward looking
statements are subject to a number of known and unknown risks,
uncertainties and contingencies, and actual results and events
could differ materially from those currently being anticipated as
reflected in such statements. Factors which may cause future
outcomes to differ from those foreseen or implied in forward
looking statements include, but are not limited to: general
economic conditions and business conditions in Serco's markets;
contracts awarded to Serco; customers' acceptance of Serco's
products and services; operational problems; the actions of
competitors, trading partners, creditors, rating agencies and
others; the success or otherwise of partnering; changes in laws and
governmental regulations; regulatory or legal actions, including
the types of enforcement action pursued and the nature of remedies
sought or imposed; the receipt of relevant third party and/or
regulatory approvals; exchange rate fluctuations; the development
and use of new technology; changes in public expectations and other
changes to business conditions; wars and acts of terrorism; and
cyber-attacks. Many of these factors are beyond Serco's control or
influence. These forward looking statements speak only as of the
date of this announcement and have not been audited or otherwise
independently verified. Past performance should not be taken as an
indication or guarantee of future results and no representation or
warranty, express or implied, is made regarding future performance.
Except as required by any applicable law or regulation, Serco
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward looking statements
contained in this announcement to reflect any change in Serco's
expectations or any change in events, conditions or circumstances
on which any such statement is based after the date of this
announcement, or to keep current any other information contained in
this announcement. Accordingly, undue reliance should not be placed
on the forward looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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