Skanska reaches financial close on the I-4 Ultimate Project in Florida, USA
Skanska announced today that it has signed a concession agreement and reached financial close with the Florida Department of Transportation (FDOT) for the financing, design, construction, operation and maintenance of the I-4 Ultimate Project in Orlando, Florida, USA.
Skanska is a 50 percent shareholder of I-4 Mobility Partners, and will invest up to approximately USD 73 M, about SEK 483 M, of equity and subordinated debt. The total design/build contract for the project amounts to about USD 2.3 billion, about SEK 15.2 billion. Skanska has a 40 percent share of the contract worth about USD 900 M, about SEK 6 billion, which will be included in the order books for Skanska USA Civil in the third quarter of 2014.
Construction will begin in the first quarter of 2015 and is estimated to be completed by 2021. The concession length is 40 years. Skanska Infrastructure Development and John Laing are project sponsors and co-investors, with Skanska-Granite-Lane as the construction joint venture and HDR-Jacobs as the design joint venture, and Infrastructure Corporation of America for operations and maintenance.
“As Florida’s largest transportation project ever, and the largest greenfield public-private partnership in the US market to date, the I-4 Ultimate is demonstration of how P3s can solve critical infrastructure needs and how Skanska can be part of the solution,” says Johan Karlström, CEO and President of Skanska.
The project consists of the reconstruction and widening of 34 kilometers of Interstate 4 to accommodate new express lanes and associated improvements. The project is based on availability payment.
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.