Statement on Barclays PLC

Montgomery, ALA. – The State of Alabama is disappointed that Barclays Plc has elected to no longer participate as an underwriting entity in the Alabama Prison Program. These new facilities, which will be leased, staffed, and operated by the State, are critical to the State’s public infrastructure needs and will be transformative in addressing the Alabama Department of Corrections’ longstanding challenges.

As such, we are moving forward with this project.

Our current correctional facilities are dilapidated, structurally failing, and in need of significant upgrades. It is not a matter of if our current facilities will fail, but when. Given the exorbitant deferred maintenance costs associated with renovating our existing facilities, replacing this infrastructure, which has far outlived its useful life, is the best path forward and the only fiscally responsible decision for the State.

The new facilities have been specifically designed for the State to address our urgent needs and are a key part of a comprehensive solution to concerns identified in current and pending litigation. These new, state-of-the-art facilities will provide safer, more secure correctional environments that better accommodate inmate rehabilitation, enhance medical and mental health services, and improve the quality of life for all those who live and work in them.

Replacing our current infrastructure, which was never designed to accommodate inmate rehabilitation, will empower the State and the ADOC to make the important shift from warehousing individuals to rehabilitating returning citizens. This is a bed replacement program as up to 11 of our existing, failing facilities will be closed, which, along with associated staff savings, underpins affordability on the project.

Pursuant to the lease agreements, the Alabama Department of Corrections will be the only tenant of the new facilities and will be solely responsible for prison operations. To be abundantly clear, these are not private prisons – they will be run by the State. As the sole operator and tenant, the ADOC will be contractually obligated to make lease payments that cover all facility maintenance, lifecycle replacement, and financing costs for the full term of the bonds.

The State is fully committed to this project and has put in place new options to advance this vital transaction in a timely and efficient manner.