Nov 30 2009
Skanska (STO:SKAB) has as part of a consortium with John Laing, reached financial close to modernize street lighting for Surrey County Council, in the UK.
The project will be carried out as a Private Finance Initiative (PFI). This means that: - Skanska receives a construction contract amounting to about GBP 83.7 M, or about SEK 970 M, which will be included in fourth-quarter order bookings. - In addition, Skanska will also receive a contract valued at around GBP 1.5 M per annum or about SEK 17 M during the 25 year operation and maintenance period, of which GBP 3 M, SEK 34 M, will be included in the order bookings for the fourth-quarter. - Skanska will invest GBP 4.6 M, or about SEK 55 M, corresponding to a 50-percent share in the project company.
The Skanska-Laing consortium will be responsible for the financing, design, construction, operation and maintenance of the stock of lighting columns for a period of 25 years starting in March 2010.
“With this project and the expansion of the London Orbital Motorway M25, we are breaking new ground and confirming our presence in the British market for public private partnerships. These areas, in which our construction operations are highly experienced and skilled, offer great potential for us,” says Anders Årling, President of Skanska Infrastructure Development.
Skanska Infrastructure Development is included in the owner consortium and the construction project will be carried out by Skanska UK.
Over the course of the next five years, about 70,000 street lights will be replaced and a further 19,000 renovated and fitted with more energy-efficient bulbs.
Source: http://www.skanska.com/