Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBFOM All Private Finance
# of Projects: 1
100% of the Results

Background informationProject Created: April 13, 2011

Project Name: Ararat Prison
Year in Operation:
Sector: Buildings
Subsector: Prison
Status: Design / Construction
Type: New Facility
Description: The project involves the design, construction, finance, and operations of a new prison facility and its systems. The facility will be a new 358-bed medium-security prison and is an expansion of an existing facility. The details of the project are as follows: a 358-bed medium-security expansion, a new secure perimeter that encompasses both the new and existing facilities, associated support and ancillary building for the delivery of services and precinct functions, the provision of integrated power, fire and communication infrastructure across the precinct, and the provision of furniture fixtures and equipment. Some the existing facilities will be demolished in the process of building the new facility.
Delivery Method as described in the country where it's located: Public Private Partnership
Is the project still active: Yes
Comments: Design, Build, Finance, Operate and Maintain contract for a 25-year term

Project Locations

Address: 132 Warrak Road
City: Ararat
State: Victoria
Country: Australia, Commonwealth of

Souces of Project Support (Non-monetary)

Checkbox Checked Land: The project is being constructed on land previously owned by the State, therefore, no new ROW or land easements were acquired at a cost to support the project
Checkbox Checked Revenue Stream (Cash Flow) Created Through Initial Commitment of Public Sponsor(s): The State will pay the DBOFM over the 25-year operating term in the form of Quarterly Service Payments (QSP). These payments will only commence after stage one of the project is complete and will be proportional to the amount of work completed in stage one after it enters into operations. The QSP will then continue on after stage two is complete (the remaining 80% of the project). The QSP is comprised of a quarterly service fee (fee bid by the DBFOM to delivery the services during O&M and an allowance for the capital cost of the new facility as well as an equity return), pass through costs (these costs reflect the reimbursement to the DBFOM for pass-through costs associated with the supply of utilities), adjustment amounts (for prisoner labor hours used in access of those originally bid), and fees (deductions from the QSP for failure to meet services performance standards, fees for prisoner escape, security escort, and nuisance fire alarms).
Checkbox Checked Environmental Clearance: The proper disposal of industrial or hazardous waste, and the mitigation of odor, vibration, and noise during construction were the primary environmental compliance issues noted in the project agreement.

Souces of Project Support (Monetary)

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: The Commonwealth Bank of Australia, Bendigo and Adelaide Bank, and West LB are providing the senior debt to support the project. This debt will be contributed by way of a construction facility and the subsequent term facility. It is assumed that the debt will be refinanced every 7 years with the State sharing in the refinancing gains if any.

Checkbox Checked

From Producers as Equity: Bilfinger Berger PI Australia Holding GmbH (BBPI) (Contributing 50% of the equity debt) and Commonwealth Investments Pty Ltd (CIPL) (contributing the remaining 50% of the equity debt) have jointly committed to providing the total equity required by the DBFOM through a letter of credit.

Project Delivery & Finance Method

Project Delivery:
All Public Finance. Public Sponsor contracts for initial design, and separately contracts for initial construction. Public Owner operates and maintains the resulting facility.
Is there an independent checking engineer? Yes
Project Finance Method: All By Private Sponsor

Procurement Approach

Project Component
Qualifications
Based Selection
Request for
Qualifications
Request for
Proposals
Invitation
for Bids
Unsolicited
Proposals

Term for Key Components & Forms of Contract

Project Component
Years
Quarters
Combined Term: Initial Design, Construction, O&M Period
26
2
Forms
Description
Other
Partnerships Victoria PPP Project Agreement  

Project Value (If and As Known)

Date of Estimated Project Value: April 13, 2011
Project Value
Hard Cost
Hard & Soft Costs
Total
$200-500 Million US
(none)

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