Wackenhut Corrections Corporation (WCC) announced today that its South African joint venture, South African Custodial Services (SACS), signed a conditional contract with the Government of South Africa for the development and 25-year operation of a 3,024-bed maximum security prison at Louis Trichardt, in South Africa's Northern Province, subject to financial closure taking place within 14 days.
Dr. George C. Zoley, vice chairman and chief executive officer of WCC, said, 'This private-public partnership with the South African Government is an important step forward for our company in further expanding WCC's leadership in the international correctional services market. We look forward to our continuing association with the South African government and are fully committed to supporting its goals and objectives.'
The construction at the site was started after the execution of the Project Development Agreement (P.D.A.) in July 1999. The P.D.A. permitted work on the project to begin while the final contract negotiations were being completed. It is being constructed by SACS's general contractor, CGM, a consortium of three South African building contractors, Concor Construction Pty. Ltd., Group 5 Construction Pty. Ltd., and Makhosi Holdings Pty. Ltd.
The cost of construction of the Louis Trichardt prison is expected to be US $44.6 million, and is being financed through a combination of operator equity and debt from a South African banking consortium. SACS's joint lead financial arrangers are African Merchant Bank and Rand Merchant Bank.
Wackenhut Corrections' partner in South African Custodial Services (SACS) is Kensani Consortium Pty. Ltd., a black South African women empowerment company. Kensani will also participate as a sub-contractor in the delivery of operations services related to facility maintenance and inmate programs.