The Northern Territory Government has announced plans for a major expansion of the prison system in Darwin, with a new 1,200-bed men's remand and intake centre and a separate 200-bed women's facility proposed at Holtze, on the outskirts of Darwin. The facilities are planned next to the existing Darwin Correctional Precinct. ABC News reported the announcement on 17 August 2026, with the story initially posted at 9:16am and updated at 2:37pm.

The proposed men's facility would be delivered through a public-private partnership. Under the proposed arrangement, a private company would be responsible for designing, financing, building, operating and maintaining the facility. The women's facility would instead be delivered by the Northern Territory Government and operated by the Department of Corrections.

The government says the new infrastructure is intended to address pressure on the Territory's correctional system. According to the government, the new remand and intake centre could allow up to 45 per cent of the existing prison population to move from the Darwin Correctional Precinct into accommodation and services considered more appropriate for people on remand. The government also plans to eventually close the Berrimah correctional facility in the early 2030s.

Northern Territory Treasurer Bill Yan said a business case for the proposed privately operated prison had been completed by Deloitte. The government is expected to begin a formal expression-of-interest process, with the successful applicant targeted for selection by the end of 2027. The design and construction process is then expected to take about four years.

Chief Minister Lia Finocchiaro said the Territory's corrections system had not kept pace with demand and that additional capacity was required. Corrections Commissioner Matthew Varley said the proposed facility would remain under the authority and responsibility of the NT corrections system even if a private company operates it.

The announcement has also attracted criticism. Larrakia Elder Richard Fejo described the plan as a response that would not address the underlying problems in the correctional system. The United Workers Union also criticised the proposal to privately operate the men's facility, arguing that incarceration should not become a commercial activity.

The Northern Territory Government, however, maintains that the proposed expansion is part of a broader corrections master plan and says the new facilities are intended to provide additional capacity, improve prison management and support rehabilitation and community safety.