School expansions will be helmed by MoE following disinterest in PPP models by the construction sector. Image: AdobeStock by amedeoemaja
<h2><span data-contrast="auto">The Ministry of Education is back at the helm of financing, designing and building school expansions following low interest from the private sector on certain projects previously run under private-public partnerships (PPP). </span><span data-ccp-props="{";201341983";:0,";335559739";:160,";335559740";:279}"> </span></h2>
<p><span data-contrast="auto">The PPP model was used to build infrastructure for ten schools under the previous National government. The approach was ended in 2017 when the Labour government took power. </span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>
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<p><span data-contrast="auto">Now, seven of the schools built under the model have seen a growth in rolls which require expansion. An </span><a href="https://www.rnz.co.nz/news/national/517457/education-ministry-takes-charge-of-school-expansions-as-companies-lose-faith-in-ppp-model" target="_blank"><span data-contrast="none">OIA request from RNZ</span></a><span data-contrast="auto"> to the Ministry of Education show that although a tender process was entered into, MoE received a limited number of responses. </span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>
<figure id="attachment_30611" aria-describedby="caption-attachment-30611" style="width: 300px" class="wp-caption alignnone"><img class="size-medium wp-image-30611" src="https://www.schoolnews.co.nz/wp-content/uploads/2024/05/AdobeStock_237074697-300x200.jpeg" alt="" width="300" height="200" /><figcaption id="caption-attachment-30611" class="wp-caption-text">Construction companies say a PPP model for school-builds is currently unattractive. Image: AdobeStock by Kadmy</figcaption></figure>
<p><span data-contrast="auto">“One of these responses flagged to the ministry that using the standard PPP terms and conditions in the PPP managed expansions made the process more difficult and complex,” read the OIA response. </span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>
<p><span data-contrast="auto">The Ministry followed up on the process by liasing with other companies known for PPP overseas. It concluded that market feedback “signals that construction suppliers are not interested in the PPP model.”</span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>
<p><span data-contrast="auto">This feedback was given to Minister of Education Erica Stanford, who was told that reluctance is partially due to an “onerous performance regime” in New Zealand compared to other markets like the USA. </span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>
<blockquote>
<p><span data-contrast="auto">“This direction has resulted in a ministry-led approach for the design and build of the remaining expansions, with hand back to the relevant consortia upon the completed buildings for long-term facilities management,” said MoE. </span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>
</blockquote>
<p><span data-contrast="auto">MoE said that the PPP model is flexible and they will continue to adapt it for future school-build projects. </span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>
<p><span data-contrast="auto">The Ministry has said it will be preparing additional advice to the Minister on her request about “potential delivery options for school property.” </span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>
<p><span data-contrast="auto">The advice on PPP was received by the inquiry into school property management. </span><span data-ccp-props="{";134233117";:false,";134233118";:false,";201341983";:0,";335551550";:1,";335551620";:1,";335559685";:0,";335559737";:0,";335559738";:0,";335559739";:160,";335559740";:279}"> </span></p>

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