The New Schools Privately Financed Project (the first contract) was a $137 million (New South Wales Auditor-General 2006: p.10) schools development that was the first Social Infrastructure project commissioned as a PFP by the New South Wales State Government (New South Wales Treasury 2005a: p.1; Ross 2004: p.2). The project consisted of the construction and maintenance of nine new schools (six primary, two secondary and one special needs school) (New South Wales Department of Education and Training 2003: p.1) in north-western and western Sydney, Illawarra and the Central Coast (New South Wales Treasury 2005a: p.1).
Five schools (comprising Dapto Primary School, Ironbark Ridge Primary School, Kellyville Ridge Primary School, Sherwood Ridge Primary School and Tallowood Special School) were to be opened in 2004, with the remaining schools (John Edmundson High School, Shell Cove Primary School, Woongarah Primary School and Glenwood High School) to be opened in 2005 (New South Wales Auditor-General 2006: p.10). In addition (and as part of the contract), eight child care centres were to be built and run independently of the schools by a private operator (New South Wales Treasury 2005a: p.1; New South Wales Treasury 2005b: p.44).
The objectives of this venture included (New South Wales Treasury 2005b: p.45; Ross 2004: p.2-3):
- The construction of nine new schools;
- Delivering the schools through a 'packaging' arrangement (whereby building and operational cost savings would be realised through economies of scale);
- Freeing up school administrator resources to enable staff to concentrate on delivering educational services as opposed to managing day-to-day facilities problems;
- Satisfying the Department of Education and Training's technical requirements and performance standards over the full contract term;
- Minimising environmental impact; and
- Incorporating safety into the design of school buildings / facilities.
The New South Wales Government is responsible for managing project oversight through its Department of Education and Training (Ross 2004: p.2; New South Wales Department of Education and Training 2003: p.4). In December 2002, Axiom Education Pty Ltd, a private sector consortium, was awarded the contract to finance, design, build and then maintain the schools / facilities (e.g. cleaning, security, routine maintenance services, etc) for a 30-year period (New South Wales Department of Education and Training 2003: p.3; New South Wales Treasury 2005b: p.44). In December 2032, the school buildings / facilities will be handed-over to the State (New South Wales Treasury 2005a: p.1; New South Wales Department of Education and Training 2003: p.8) at nil cost.
The consortium partners consisted of (New South Wales Department of Education and Training 2003: p.4):
- ABN AMRO Australia Ltd, the project's senior debt underwriter;
- Hansen Yuncken Pty Ltd, engaged as the project's co-construction contractor;
- St Hilliers Contracting Pty Ltd, the project's other co-construction contractor and designer; and
- Spotless Services Australia Ltd, for providing schools / facilities management.
Construction of the schools commenced during 2003 (Ross 2004: p.3). The first tranche was delivered as scheduled in 2004 and the second tranche in 2005 (New South Wales Treasury 2005b: p.44). The child care centres opened "progressively" from late 2004 (New South Wales Treasury 2005b: p.44).