A transaction adviser has been selected by the DCS to thoroughly examine the opportunities that exist for the incorporation of PPPs into the South African correctional services sector, as well as establishing the costs surrounding the development of the four new prisons.
The Perekisano-Mmogo Consortium was selected out of eight bidders to render a host of services related to the PPP running of prisons and construction of new prisons, in a contract valued at more than R20-million.
The consortium will be required to facilitate negotiations between the DCS and private parties as well as undertake a comprehensive feasibility study into the construction and operation of four further prisons.
It is envisaged that private companies will operate the Mangaung Maximum Correctional Centre in Bloemfontein, that currently holds 2 928 prisoners, and the Kutama-Sinthumule Maximum Correctional Centre in Louis Trichardt, that holds 3 024 prisoners.
Upon completion of the feasibility study, two new prisons will be built in Gauteng, one new prison in Klerksdorp and one in Kimberley.
The transaction adviser is currently familiarising itself with all relevant documentation that will be required for the PPP negotiations to be successful, the DCS said.
After all documentation has been thoroughly analysed, discussions with potential builders and operators will begin.
According to the DCS, the signing of contracts with private parties has been delayed due to negotiations between itself and the transaction adviser, as well as allowing inputs from the National Treasury, Department of Public Works and the State Attorney. The documentation is reportedly nearly finalised.
Once the contract with the private parties has been signed, the feasibility study on the four new prisons will be undertaken and completed within six months.
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