Skanska signs memorandum of understanding for SEK 450 M power project in Sri Lanka
Skanska is slated to construct the new Kukule Ganga hydropower plant on Sri Lanka. Skanska and the Ceylon Electricity Board have signed a memorandum of understanding to sign a contract later this spring. The assignment is valued at about SEK 450 M and is contingent upon approval of OECF, the government financing institution in Japan which is providing soft loans for the project.
| PRESS RELEASE, MARCH 17, 1999 26/99 Skanska signs memorandum of understanding for SEK 450 M power project in Sri Lanka Skanska is slated to construct the new Kukule Ganga hydropower plant on Sri Lanka. Skanska and the Ceylon Electricity Board have signed a memorandum of understanding to sign a contract later this spring. The assignment is valued at about SEK 450 M and is contingent upon approval of OECF, the government financing institution in Japan which is providing soft loans for the project.Skanska will carry out the underground work for the power plant which will have an output of 2x35 MW. The project involves headraces and tailraces totaling 6.6 kilometers, a 140-meter pressure shaft and an underground power station. The construction time is 43 months. The Japanese company Kajima will carry out the surface work in accordance with a separate contract. Previously, Skanska International Civil Engineering built the Kotmale power plant on Sri Lanka. In 1997, the SEK 5.5 billion Uri project was completed in northern India. Currently, Skanska has power plants under construction totaling about SEK 2.75 billion in Colombia, Pakistan and Iceland.
Stockholm, March 17, 1999 SKANSKA AB
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