Financing completed for A1 motorway project in Poland – construction contract valued at SEK 3.7 billion for Skanska
A Skanska-led consortium has signed an agreement for the financing of the A1 motorway project, south of Gdansk, in Poland. The agreement means that Skanska will commence construction of the road. Skanska’s share of the contract amounts to EUR 400 M (SEK 3.7 billion) and is included in order bookings for the third quarter of 2005.
July 29, 2005
Financing completed for A1 motorway project in Poland - construction contract valued at SEK 3.7 billion for Skanska
A Skanska-led consortium has signed an agreement for the financing of the A1 motorway project, south of Gdansk, in Poland. The agreement means that Skanska will commence construction of the road. Skanska's share of the contract amounts to EUR 400 M (SEK 3.7 billion) and is included in order bookings for the third quarter of 2005.
Skanska BOT is part of the ownership and investor consortium Gdansk Transport Company (GTC). Skanska's share in the company amounts to 30 percent. Laing Roads from the UK, Intertoll of South Africa and NDI of Poland have the remaining shares. Skanska's investment amounts to approximately EUR 10 M (approximately SEK 94 M).
The project is being conducted in public-private partnership. The Polish infrastructure ministry and the ownership consortium in which Skanska is a member have signed a concession agreement entailing a total undertaking to finance, design, construct and operate the approximately 90-kilometer stretch of road. The ownership consortium will be responsible for operation and maintenance during the concession period, which extends until 2039.
Payment from the Polish Road Authority will comprise a guaranteed basic payment for access to the road with supplements for traffic volumes through "shadow tolls."
The entire construction project is valued at approximately EUR 500 M (SEK 4.6 billion) and will be led by Skanska Poland (80 percent) and carried out in collaboration with the Polish company NDI (20 percent).
"The project is Skanska's largest project to date in Poland and it strengthens our position in the market even further. In Poland, this is a very important project and we now look forward to getting started", says Jan-Gunnar Glave, President of Skanska Poland.
"By choosing to carry out the project as a Private Public Partnership - PPP - the Poles gain access to the road earlier than they otherwise would, which is gratifying", says Simon Hipperson, President of Skanska BOT.
The new stretch of motorway is approximately 90 kilometers long and runs from north to south between Gdansk and Nowe Marzy in northern Poland. A further 60 kilometers are planned for a second stage.
For Skanska, privately financed infrastructure is an important and expanding area within the core business. Skanska is the leading construction company in public-private partnership in the UK. Skanska is constructing roads in public-private partnership in Chile and has recently completed the first PPP road in Norway. Skanska also constructed the first PPP road in the Nordic region, the motorway between Helsinki and Lahti in Finland, between 1997 and 1999. Recently, Skanska was also selected for the next major PPP project in Finland, a slightly more than 50-kilometer stretch of the E18 between Turku and Helsinki.
For further information please contact:
Göran Carlberg, Project Developer, Skanska BOT,
tel. +46 70 215 30 40
Per Åkerman, Project Director Skanska-NDI JV,
tel. +48 502 746 007
Anna Wenner, Press Officer, Skanska AB,
tel. +46 8-753 88 99