Public private partnerships (PPP) to build schools
The Minister of Finance in the Labour-led government has indicated that the government does not support the use of Public Private Partnerships for schools. All schools for which existing PPP contracts have been signed, whether for new builds or rebuilds, are advancing as agreed.
Future PPP projects that have been signalled, but are not currently subject to signed contracts, will be considered as part of the 2018 Budget process.
Understanding public private partnerships
A public private partnership (PPP) is an agreement between the Ministry of Education and a consortium of private companies to build a new school or rebuild an existing school. The agreement is a single, long-term contract, usually for 25 years. The agreement includes the ongoing maintenance of the property.
Under a PPP, the Ministry engages the private partner to design, finance, build and maintain a particular school. We pay the private partner quarterly once the new buildings are open. We reduce the payment if the school facilities do not meet the standards in the contract. This effectively provides a 25 year guarantee on that school’s buildings and service delivery.
The Government still owns the land and buildings. The principal and board of trustees are responsible for all education matters. Because it does not deal with property and maintenance issues, the board of trustees in a PPP school has more time to focus on education.
Public Private Partnership schools
The first 2 schools delivered through PPP are in Auckland.
- Hobsonville Point Primary School opened in term one, 2013.
- Hobsonville Point Secondary School opened in term one, 2014.
The second PPP contract provided for 3 new schools and the relocation of the existing Wakatipu High School.
- Ormiston Junior College in Auckland opened in term one, 2017.
- Rolleston College in Christchurch opened in term one, 2017.
- Haeata Community Campus in Christchurch opened in term one, 2017.
- Wakatipu High School in Queenstown opened in term one, 2018.
The most recent PPP contract includes 3 new primary schools (2 in Auckland and 1 in Hamilton) and the relocation of 2 existing high schools to the QEII Park site in Christchurch.
- Matua Ngaru School in Huapai Auckland is scheduled to open in term one, 2019.
- Sylvester Primary School in Hamilton is scheduled to open in term one, 2019.
- Te Uho O Te Nikau Primary School in Flat Bush Auckland is scheduled to open in term one, 2019.
- Avonside Girls’ High School and Shirley Boys’ High School in Christchurch are scheduled to open in term two, 2019.
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