The state government has reached out to the private sector to design, construct, finance and maintain the $232 million Eastern Goldfields Regional Prison Redevelopment project.
The 350-bed, mixed gender facility will replace the existing prison in Kalgoorlie-Boulder in 2015.
Treasurer Christian Porter said the project would be the government's fourth public-private-partnership, joining the Queen Elizabeth II Medical Centre car park, the Mundaring Water Treatment Plant and the Midland Health Campus.
"Delivering the new facility in partnership with the private sector is expected to provide the best value for taxpayers and will assist the new facility to be built on budget and on time," Mr Porter said.
"Under the partnership, a contract will be entered into with a private sector contractor for the design, construction and financing of the facility.
"Once construction is complete, the Department of Corrective Services will effectively 'move in' to provide all operational services for the prison, while ongoing maintenance of the buildings will remain the responsibility of the contractor."
Corrective Services Minister Terry Redman said the new complex would provide a net increase of 250 beds and improve the overall level of custodial services in the Goldfields region.
"It will also ensure offenders can remain 'in country' and be close to family and other kinds of support," Mr Redman said.
"The new prison will deliver dramatic improvements in working and living conditions for both staff and prisoners, providing a replacement for the existing, significantly overcrowded Goldfields prison that is in poor condition - a result of years of neglect by the previous Labor government.
"The facility will also bring significant economic benefits to the Goldfields region, particularly through increased local employment opportunities, both in the construction and operational phases of the project."
