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CXC wins Idaho's first private prison competitive contract for 1,250-bed facility (apparently beating out WHC et al). CXC's facility costruction and operating experience is cited in the win.
Tulvio
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NASHVILLE, Tenn., Dec. 29 /PRNewswire/ -- Corrections Corporation of America (NYSE: CXC - news) announced today that it has signed a contract with the state of Idaho to provide a 1,250-bed, minimum- and medium-security prison in Boise to house adult male inmates.
The project is expected to generate approximately $16 million in annual revenues.
CCA will design and oversee construction of the prison, with opening
scheduled for third quarter 1999. The facility will be financed by the state. The prison will be expandable, and the state has indicated its future need may give the company the opportunity to provide as many as 3,000 beds to Idaho. ''This is Idaho's first private-sector corrections project, and we are delighted that they chose a value-for-money approach to contracting,'' said Chairman and CEO Doctor R. Crants. ''Our partnership will give the taxpayers affordable, long-term access to secure beds while establishing a new region of operation for CCA.''
CCA was selected for the contract after a lengthy competitive procurement process. According to the Idaho Department of Correction, the company was selected because of its extensive operating experience, size, financial strength, and the value of both its facility construction and management proposals.
CCA manages prisons and other correctional institutions for governmental agencies. The company is the industry leader in private sector corrections with 52,890 beds in 67 facilities under contract in the U.S., Puerto Rico, Australia and the United Kingdom. CCA's full range of services includes finance, design, construction and management of new or existing facilities, as well as long-distance inmate transportation
This press release contains forward-looking statements that involve various risks and uncertainties. Actual results could differ materially from those contained in these forward-looking statements due to certain factors, including business and economic conditions and availability of financing. These and other risks and uncertainties are detailed in the company's reports filed with the SEC.
SOURCE: Corrections Corporation of America
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