NT opens expressions of interest for Darwin's new correctional facilities, a $1.6–2 billion build

The Northern Territory Government has opened the market for new correctional facilities in Darwin. The Department of Treasury and Finance is seeking expressions of interest (EOIs) from consortia to design, build, finance, operate and maintain a new 1,200-bed men's remand and intake centre at Holtze, on Darwin's outskirts, under a public private partnership (PPP).

The centre will sit alongside a new, purpose-built 200-bed women's facility that the government will deliver itself. Together, the two facilities are estimated to cost between $1.6 billion and $2 billion. The government announced the project on 17 August 2026, publishing a business case summary and an indicative procurement timeline, and released the EOI a month later.

Project at a glance

Two facilities, two delivery models

The men's centre is a DBFOM PPP. DBFOM stands for design, build, finance, operate and maintain. A single private consortium, typically bringing together a builder, a custodial operator, a facilities manager and financiers, designs and builds the centre, arranges the finance, then runs and maintains it under a long-term contract with the NT Government, with performance measured against agreed outcomes. The business case points to Ravenhall Correctional Centre in Victoria and Clarence Correctional Centre in New South Wales as examples of the model.

The Territory has worked with PPPs at this site before. The existing Darwin Correctional Precinct next door was delivered as an availability-based PPP covering design, build, finance and maintenance, and has been operating since 2014. The new centre goes a step further: its private partner will also run custodial operations.

The women's facility is design and construct (D&C). Under D&C, the government funds the project and engages a contractor to complete the design and build it. Once it is finished, the Department of Corrections will run the facility. The business case says this reflects the specific needs of women in custody, and matches how every other Australian state and territory operates its women's facilities.

Staging the build

Stage 1 delivers 1,050 beds: 850 men's beds, mainly for people on remand, and the 200-bed women's facility, along with all the site infrastructure. Stage 2 would add about 350 beds to the men's centre, taking it to 1,200 and the two sites to 1,400 beds in total.

The business case sets out the capacity the Territory needs. In October 2025 the Territory's three adult precincts held 2,856 people against 2,768 available built beds. The ageing Berrimah Correctional Precinct, with 844 beds, is planned to close in the early 2030s, and Stage 1 is sized to replace those beds and meet forecast demand. Placing the new facilities beside the Darwin Correctional Precinct is intended to make prisoner processing, transport and shared services more efficient.

Opportunities for industry

A market sounding in December 2025 drew twelve participants from construction, custodial operations, facilities management and finance.

The business case expects construction to engage tier-one contractors alongside local subcontractors, trades and suppliers. It says local content, apprenticeship and Aboriginal business participation commitments will be written into the contracts as obligations and monitored through construction and operations. The EOI is open to proponents that can deliver the project in full or a material component of it, with works in the Darwin, Palmerston and Litchfield region. The NT Government has committed $15 million across 2025-26 and 2026-27 to run the procurement.

What's next

Treasury's indicative timeline for the men's centre, which it notes is subject to change:

• 2 November 2026: EOIs close on Quotations and Tenders Online.
• End of November 2026: EOI evaluation and shortlist.
• December 2026: Request for proposals (RFP) opens to shortlisted consortia.
• Q1 2027: RFP closes.
• Q2 to Q3 2027: Evaluation and negotiation.
• Q4 2027: Contractual and financial close, contract award and the start of design development.

Timing for the women's facility D&C tender has not yet been published; the business case says procurement for both facilities will progress through 2026 and 2027. Once built and commissioned, the new facilities are expected to open in the early 2030s.

Published 8 October 2026 · Updated 2 October 2026