Skanska and Costain land new BOT project in London for SEK 1 billion
Skanska has landed another BOT project in the UK. The order covers the design, construction, financing and operation of the New Clinical Building at the Kings College Hospital in Camberwell, south London. (The assignment does not include the medical operations).The agreement generates a construction assignment of about GBP 76 million, about SEK 1,036 M. This will be carried out by Skanska and the British partner Costain in a 50/50 consortium.
PRESS RELEASE, DECEMBER 9, 1999 102/99
Skanska and Costain land new BOT project to build and operate Kings College Hospital in London for SEK 1 billion
Skanska has landed another BOT project in the UK. The order covers the design, construction, financing and operation of the New Clinical Building at the Kings College Hospital in Camberwell, south London. (The assignment does not include the medical operations).
The agreement generates a construction assignment of about GBP 76 million, about SEK 1,036 M. This will be carried out by Skanska and the British partner Costain in a 50/50 consortium.
The new clinic at Kings College Hospital is a privately financed BOT project within the British Government’s Public Finance Initiative program.
The concession company that will carry out the project consists of Skanska BOT, Costain, the Gardner Merchant service company and the Edison Capital finance company. A contract has been signed with the Kings College Hospital Trust to finance and operate the hospital for 35 years. Skanska BOT owns 33 percent of the shares in the concession company. Skanska’s investment amounts to about GBP 1.8 million, approximately SEK 25 million.
The New Clinical Building comprises a 24,000 sq. m. clinic block on the present grounds of the hospital. The total investment amounts to GBP 110 million, about SEK 1.5 billion. The clinic is scheduled to open in December 2002. Gardner Merchant, which provides support services to a number of British hospitals, will be responsible for maintenance of the property and the so-called hotel service within the hospital.
"This order is timely, since several similar projects will be announced in the years immediately ahead. Our first BOT project in the UK, the prison at Bridgend, Wales, which has been in operation for two years, has provided us with valuable experience of privately financed public projects. We now have expertise in all phases of this type of projects, including the operations phase," says Gunnar Lundberg, Senior Vice President and Investment Manager, Skanska BOT AB.
"Skanska has considerable experience of international hospital projects. It is pleasing that we are now also being entrusted with such a construction project in the UK," says Lars Johansson, Managing Director of Skanska UK.
BOT (Build Operate Transfer) means that private interests finance, build and operate public facilities during a contracted period. Upon expiration of the contract, the facilities are transferred back to the customer.
Stockholm, December 9, 1999
Skanska AB
Group Communication
For additional information, contact:
Bert-Ove Johansson, President, Skanska BOT AB, tel +46 8 – 753 88 77
Lars Johansson, Managing Director of Skanska UK + 44-7899-793051