A new prison at Wiri will be designed, built, financed, maintained and run by the private sector.

Infrastructure Minister Bill English and Corrections Minister Judith Collins announced today Cabinet had given the green light to a public-private partnership for the prison.

Officials had met potential bidders in recent months and would now be asking for expressions of interest.

"This Government has made it clear that we are open to greater use of private sector expertise where it makes sense," Mr English said.

"The Department of Corrections has demonstrated that in this case it does make sense and that there is an opportunity to introduce innovation that will be beneficial across the wider prison network."

The Government expected a privately-run prison would be cheaper than a State run one.

Ms Collins said the new prison would ensure there were enough beds to cope with the future prison population. An additional 1243 prison beds are forecast to be needed by 2016 to cope with forecast growth in prisoner numbers and the need to replace ageing existing prisons.

A private operator would "inject new ideas", Ms Collins said.



"The successful operator will be required to deliver innovative rehabilitation and reintegration services. It will also be critical that they can meet the needs of Maori and provide effective Maori-specific services.



"Only consortia with experienced and reputable builders and prison operators will be considered. It is very likely that international companies will partner with local businesses and organisations to provide local knowledge, advice and services."



All prisoners would remain the responsibility of the Chief Executive of the Department of Corrections.