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The largest transportation project in Florida about to start

9/22/2014 1:44 PM CET
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The massive upgrade of Interstate 4 in Florida is Skanska's second public-private partnership (PPP) win in the U.S. It is also the largest transportation project in the state and the largest greenfield PPP scheme in the U.S.

40-year contract

The PPP project includes the design, construction and financing of Interstate 4 through Orlando, Florida, as well as a 40-year contract for operation and maintenance. The design/build contract is valued at USD 2.3 billion, about SEK 15.2 billion. Skanska has a 40-percent share of the contract, corresponding to SEK 6 billion.

20 years earlier

"By using a PPP arrangement for the I-4 Ultimate Project, we can deliver these improvements 20 years sooner than using conventional methods. This benefits Central Florida residents, commuters and visitors," says Ananth Prasad, Secretary of the Florida Department of Transportation.

"The I-4 Ultimate demonstrates how PPPs can solve critical infrastructure needs and that we are part of the solution," says Johan Karlström, President and CEO of Skanska.

Four new managed lanes

The I-4 Ultimate Project stretches 34 km north/south through Orlando. The project includes four new express lanes and reconstruction of 15 major interchanges, in addition to new construction and reconstruction of about 140 bridges and the installation of toll, information and lighting systems.  The Florida Department of Transportation will retain the toll revenue and will control the toll rates.

Both owner and builder

Skanska holds 50 percent of the shares in the owner company I-4 Mobility Partners, and will invest approximately USD 73 M, or about SEK 483 M. The Skanska-Granite-Lane, SGL, construction joint venture is led by Skanska, which holds a 40-percent share.

Construction will begin in the first quarter of 2015 and is scheduled for completion by 2021.