Financing completed for public-private hospital project in UK - Skanska invests GBP 15 M, SEK 200 M, and wins a construction contract valued at GBP 300 M, SEK 4 billion
Skanska and Innisfree in a consortium have signed a contract for financing, designing, constructing and operating three hospitals in Nottinghamshire within the British program for public-private partnerships, PFI (Private Finance Initiative).
Press Release
November 7, 2005
Financing completed for public-private hospital project in UK - Skanska invests GBP 15 M, SEK 200 M, and wins a construction contract valued at GBP 300 M, SEK 4 billion
Skanska and Innisfree in a consortium have signed a contract for financing, designing, constructing and operating three hospitals in Nottinghamshire within the British program for public-private partnerships, PFI (Private Finance Initiative). For Skanska, this means:
- committing to an investment of GBP 15 M, approximately
SEK 200 M, corresponding to a 50-percent interest in the consortium that owns the project. The investment will produce a 32-year income stream during the concession period.
- signing a construction contract amounting to GBP 300 M, about SEK 4 billion, which is included in order bookings for the fourth quarter 2005.
- signing FM-contracts valued at around GBP 3 M annually, about SEK 40 M, covering both the construction phase and the concession period. These contracts will be successively included in order bookings from fourth quarter 2005
Skanska Infrastructure Development and Innisfree take over responsibility to develop, finance, design, build and operate the King's Mill Acute Hospital, Mansfield Community Hospital and Newark General Hospital from the local healthcare authorities, Sherwood Forest Hospitals NHS Trust and Mansfield District Primary Care Trust.
Skanska Infrastructure Development (along with its investment partner) will lead the development's special purpose vehicle and will invest GBP
15 M in the project company. The consortium income stream during the 32-year period will be based on availability.
Skanska UK receives the construction contract exclusively totaling about 140,000 square meters. The rebuilt and extended hospitals will house a number of specialist clinics and a total of 840 patient beds. The preparatory work has been initiated and about 60 percent will be completed in 2009. All construction work is planned for completion during the first quarter of 2011.
Skanska UK will also be responsible for the provision of certain facilities management services during the construction phase and the concession period.
Skanska is a leading company within the British PFI program. Skanska Infrastructure Development has developed and invested (or committed to invest) over GBP 80 M, about SEK 1.1 billion, in eight British PFI projects, mostly hospitals and schools. This has resulted in construction contracts for Skanska UK totaling more than GBP 2.5 billion, about SEK 34 billion.
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For further information please contact:
Alan Gillman, Executive Vice President, Skanska Infrastructure Development, tel +44 20 7842 0788
Tanya Barnes, Head of Communications, Skanska UK,
tel +44 1923 423 905
Anna Wenner, Press Officer, Skanska AB,
tel +46 8 753 88 99