Skanska named preferred bidder for the development of PFI street lighting in the London Boroughs of Croydon and Lewisham

2/21/2011 1:30 PM CET
Press release

Skanska and John Laing have been selected as preferred-bidder to develop the street lighting network for the London Boroughs of Croydon and Lewisham in the UK.

During the next phase, negotiations will be concluded and financing arranged. Contract award and financial close is expected to be reached during spring 2011.

The project is being carried out via a UK private finance initiative (PFI) program. This means that the Skanska-Laing consortium will be responsible for the finance, design, build, operation and maintenance of the lighting network for 25 years, starting July 2011.

Once contracts are finalized, Skanska Infrastructure Development will invest approximately GBP 4.5 M, SEK 46 M, during the project period, representing its 50 percent share of the special purpose company, and will be responsible for the development and management of the project together with its partner.

The contract is estimated to amount to approximately GBP 74 M, SEK 760 M. When the financing of the project is finalized, the construction contract will be signed and subsequently included in Skanska UK’s order bookings.

The first five years of the project will involve replacing approximately 38,000 streetlights with new energy efficient lights, refurbishing about 4,000 lighting columns, replacing some 8,000 street signs and bollards as well as implementing a central control system. Skanska will also be responsible for operation and maintenance during the contract period.

Skanska and John Laing are currently working together on the Surrey Street Lighting project which has been under way since end 2009.

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.

Skanska UK reported 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 the UK market.