Deal: A PPP was formed between Corrective Services NSW, Infrastructure NSW (iNSW) and the NorthernPathways consortium, comprising John Laing Investments, John Holland Group, Serco Group and Macquarie Capital, to develop and maintain the New Grafton Correctional Centre.

Value: Undisclosed

Area: Banking and finance; construction and infrastructure

Key players: The King & Wood Mallesons team advising NorthernPathways was led by partners Chris Dynon (pictured), Claire Rogers, James Forrest and Rebecca Finkelstein, supported by senior associates Chris Allfrey, Gareth Howe and Steve Swan, and solicitors Amy Maguire, Stuart Alexander and Laura Bonnici.

The MinterEllison team advising Corrective Services NSW and iNSW was led by partner Stewart Nakervis, supported by partners Eve Eisman, Nicole Green, Elisabeth Ellis, Peter Block and Owen Cooper. 

The Herbert Smith Freehills team advising the financiers for the consortium was led by partners Erin Wakelin and David Templeman, supported by senior associate Emma Zarb and graduate John McQueen.

Deal significance: NorthernPathways, Corrective Services NSW and iNSW have formed a PPP for the design, delivery, operations, maintenance and financing of the New Grafton Correctional Centre (NGCC).

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The centre is expected to be completed by 2020 and will hold 1,700 inmates in state-of-the-art facilities.

The project will provide a $560 million boost to the local economy, according to a statement from Herbert Smith Freehills, creating 1,100 jobs during construction and approximately 600 permanent jobs once operational.

KWM lead partner Chris Dynon said the deal was the first PPP implemented under the new structure of the NSW Treasury and iNSW.

“We are proud to have advised the consortium on this significant and challenging project,” he said.

“The NGCC adds to Serco’s extensive portfolio, which comprises existing operational correctional facilities in Western Australia, Queensland, New Zealand and the United Kingdom. It also represents the fourth winning PPP in recent years on which Macquarie has been financial advisor and KWM has been legal advisor to the consortium or its financiers.”

HSF lead partner Erin Wakelin said the firm was pleased to advise on the “groundbreaking and ambitious” transaction.

“In Australia, Herbert Smith Freehills is leading the way when it comes to PPPs,” she said.

“Recently we advised on the Capital Metro light rail project in the ACT and the first stage of the $1.1 billion Social and Affordable Housing Fund in NSW. We continue to act for the Melbourne Metro Rail Authority on the Melbourne Metro Project PPP procurement – the largest PPP project in Australia.”

Pictured: King & Wood Mallesons partner Chris Dynon.