PROJECTS

Public-Private Partnership Framework for Johnsonville Library

The problem

The Johnsonville public library, in a suburb of Wellington New Zealand, had become too small to meet the needs of the growing population. It needed to cater to the 10 000 more people who were expected to live in Johnsonville over the coming 20 years.

Autostop Group, a property developer, realized the Wellington City Council (WCC) needed a framework to systematically evaluate the four options they had to develop a larger library. The developer knew that the New Zealand public sector lacked experience in procuring public-private partnerships.

How we helped

Castalia provided a public-private partnership framework to systematically evaluate the costs and benefits of engaging a private service provider compared to owning, designing and building the facility. Castalia identified five characteristics of value for money in provision of facilities to help WCC assess cost and service quality in the new library. We also presented three case studies illustrating the benefits of engaging private service providers. Castalia made suggestions to WCC for using the framework to select a procurement approach.

Impact

In 2015 the WCC decided against a public-private partnership and elected to build a new NZ$22.5 million library as part of the Johnsonville Community Centre. Construction of the 1800m² Waitohi library began in January 2018. The library is expected to open to the public in December 2019. Castalia analysis indicated that a PPP would have resulted in the citizens enjoying a new library 6 to 7 years earlier.