NSW public/private partnership schools a lesson for NZ

Nine new schools delivered under a public/private partnership model are "an improvement on traditional public sector delivery", a New South Wales Treasury report has found.

The nine primary and secondary schools - built under a privately financed project (PFP) model - opened in north-western and western Sydney, Illawarra and the Central Coast between 2004 and 2005.

Under the PFP model, the private sector financed, designed and constructed the schools to standards that met or exceeded Department of Education and Training's standards.

The private sector also provides cleaning, maintenance, security, furniture, equipment and grounds maintenance and other services for the buildings until 2032, when the buildings are handed back to the government.

The Treasury report says the schools were built two years earlier than would have been possible under a traditional public sector contract, had improved management of facilities, released a school principal's and teachers' time that was previously spent dealing with facilities management, and delivered better value for money as tested against the Public Sector Comparator.

The chief executive of the New Zealand Council for Infrastructure Development, Stephen Selwood, said the report gave clear insight into the benefits of public and private sector partnerships.

Public/private partnerships were being used extensively worldwide to bridge the gap between infrastructure demand and the limitations of public funds.

"As this example demonstrates, well-managed partnerships can provide better value for money and clear control and accountability for service standards," Mr Selwood said.

"There are important lessons to be learned from this for New Zealand."

The report also says teacher unions and the Secondary Principals Council criticised some aspects of the schools but were positive regarding the operation of the contract, and were responsive to calls for assistance on facilities management issues.

"This represents a substantial shift from early concerns," the report says.

In The Australian Financial Review, NSW Education Minister Carmel Tebbutt described the nine new schools as part of a five-year plan to fast-track construction in the areas of NSW that needed them most.

Consortium to build nine more schools.

The consortium of companies that completed the nine schools has won a contract to design, build and maintain a further nine schools over a 30-year concession period.

The Axiom Education consortium comprises ABN AMRO, Babcock and Brown, St Hilliers, Hansen Yuncken and Spotless Services.

Construction on the first schools starts in March. At the end of the 30-year period, responsibility for the schools transfers to the state government.

The New South Wales Treasury report is at this web page.

A statement from Stephen Selwood is at this web page.

Carmel Tebbutt's reported comments are at this web page.

A press release from Axiom is at this web page.