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Victoria Extends Port Phillip Prison Contract

11 January 2016

The Victorian Government has extended its contract with G4S Correctional Services (Australia) Pty Ltd for the continued management and operation of Port Phillip Prison.

G4S has owned and operated the Port Phillip Prison for the past 18 years. Port Phillip Prison has the current capacity of 1087 beds. The current contract included an option to extend, subject to the State and G4S agreeing to the extension terms.

The contract extension represents value for money for Victorians, including substantial improvements in the contractual and operational arrangements, which are largely consistent with that achieved for the Fulham Correctional Centre in early 2015.

Subject to performance, the contract term will run for up to 20 years, commencing from 10 September 2017, from when the current contract was otherwise due to expire.

From commencement, Forensicare will be the new provider of subcontracted forensic mental health services at the prison, replacing St Vincent’s for these services only.

This supports the implementation of a system-wide approach to forensic mental health care.

The extension also consolidates contractual arrangements for the delivery of education programs at the prison by Kangan TAFE.

G4S will receive service payments of approximately $1.83 billion in net present value terms (or $3.11 billion being the total nominal undiscounted cost) for the operation and maintenance of the maximum-security prison.

G4S Correctional Services is a wholly owned subsidiary of G4S Regional Management (UK&Ireland), which specialises in the provision of security products, services and solutions globally.

Quotes attributable to Minister for Corrections Wade Noonan

“The Victorian Government has secured a long-term extension of the Port Phillip agreement with G4S Correctional Services, which will ensure continued operation and jobs at the correctional facility.”

“The new arrangements include necessary investments to refurbish the prison as required over the extension term.”

Reviewed 19 August 2020

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