Sep 17 2014
The GEO Group announced today that a GEO led consortium comprised of GEO’s wholly-owned subsidiary, The GEO Group Australia Pty. Ltd., John Holland Construction, and Honeywell has signed a contract with the Department of Justice in the State of Victoria for the development and operation of a new 1,000-bed Prison in Ravenhall, a locality near Melbourne, Australia. The Facility will have the capacity to house 1,300 inmates should the State of Victoria have the need for additional beds in the future.
GEO expects to begin the development of the Facility in 2015 under a Public-Private Partnership financing structure with an equity investment from GEO of approximately $120 million with returns on investment consistent with GEO’s company-owned facilities. GEO Australia will operate the Facility upon its completion in late 2017 under a 25-year contract, which is expected to generate approximately $96 million in total first year annualized revenues. The Facility will provide unprecedented levels of in-prison and post-release programs aimed at reducing reoffending rates and helping offenders reintegrate into society.
George C. Zoley, Chairman of the Board and Chief Executive Officer of GEO, said: “The signing of this important contract represents a significant milestone for our company. The new Ravenhall Facility will provide an unprecedented level of rehabilitation and community reentry programs through our ‘GEO Continuum of Care.’
“We appreciate the trust placed in our Company by the State of Victoria which is a testament to the innovative facility design, management and rehabilitation programs proposed for the Ravenhall Facility, as well as, a reflection of our long-standing partnership with Corrections Victoria at the Fulham Correctional Centre and the Fulham Nalu Challenge Community Unit. We are looking forward to working with Corrections Victoria to further improve the delivery of rehabilitation and community reentry services in the State of Victoria and to strengthen our 17-year partnership,” Zoley added.
Source: http://www.geogroup.com