Skanska reaches financial close for Croydon and Lewisham Street Lighting PPP Project
Skanska has, as part of a 50/50 consortium with John Laing, reached financial close to renew and upgrade Croydon and Lewisham’s Street Lighting. The construction contract is worth GBP 74 M, about SEK 760 M, and investment GBP 4.5 M, SEK 46 M. The project will be carried out as a PPP (Public Private Partnership). This is the second street lighting project under the British PFI-program (Private Finance Initiative) that the consortium is involved in, following financial close of the Surrey Street Lighting project at the end of 2009.
The Skanska-Laing consortium will be responsible for the design, build, finance and operation of lighting columns and illuminated street furniture for a period of 25 years starting in August 2011. The clients for the project are the London Boroughs of Croydon and Lewisham.
Skanska will receive a construction contract worth GBP 74 M, which will be included in SkanskaUKorder bookings for the second quarter. In addition, Skanska will operate and maintain the street lighting during the life of the project valued at around GBP 2 M a year, the first two years will be included in Skanska UK order bookings for the second quarter of 2011.
Over the course of the next five years about 38,000 street lights and 8,000 street signs and bollards will be replaced over the boroughs. Also 4,000 street lights will be refurbished.
Skanska Infrastructure Development is a leader in the global Public Private Partnerships (PPP) market. The business unit invests in, develops and operates roads, hospitals, schools, power plants and other social infrastructure in partnership with the public sector.
SkanskaUKreported revenues of SEK 14 billion in 2010, with about 4,500 employees. The company is active in building and civil construction, utilities and building services. In the UK Skanska is also a leader within the sector for Public Private Partnerships, PPP, also known as Privately Financed Initiative, PFI. Skanska has also initiated the development of homes for theUKmarket.