Financing complete for public-private Finnish highway – Skanska’s construction contract valued at SEK 1.5 billion
A Skanska-lead consortium has signed a contract for the financing, construction and operation of an expressway project on the E18 in the south of Finland which will be conducted as a public-private partnership (PPP).
October 27, 2005
Financing complete for public-private Finnish highway - Skanska's construction contract valued at SEK 1.5 billion
A Skanska-lead consortium has signed a contract for the financing, construction and operation of an expressway project on the E18 in the south of Finland which will be conducted as a public-private partnership (PPP). This means that Skanska:
- signs a construction contract which amounts to EUR 164 M, approximately SEK 1,515 M, and will be included in order bookings for the fourth quarter of 2005.
- signs a 21-year agreement for the expressway's operation and maintenance that totals about EUR 36 M (SEK 330 M), which will be included successively in the order bookings commencing in 2008.
- participates with an investment of EUR 12 M, about SEK 110 M, corresponding to a 41-percent interest in the ownership consortium Tieyhtiö Ykköstie, which owns the project and receives remuneration during the 21-year contract period based on availability, quality and safety.
The project comprises the approximately 51-kilometer section Muurla-Lohja on the E18 between Helsinki and Turku. The project will be conducted as a public-private partnership (PPP), which means that the Skanska consortium is responsible for the finance, design, construction and operation of the road during the period. The contract period is for 21 years, starting from when the expressway is open for traffic, which is estimated to be in November 2008. Construction work has commenced on the site.
The Finnish Road Administration Finnra awarded the company Tieyhtiö Ykköstie the responsibility for the project. Skanska Infrastructure Development (previously Skanska BOT) holds a 41-percent participating interest in Tieyhtiö Ykköstie. Laing Roads Ltd from the UK and Lemminkäinen Corporation from Finland hold the remaining interests.
Skanska Finland and Lemcon, a subsidiary of Lemminkäinen, will undertake the construction assignment that in total is valued at
EUR 299 M, of which Skanska has 55 percent. Skanska Finland and Lemcon will also carry out the operation and maintenance work valued in total at EUR 65 M of which Skanska's share is 55 percent.
The project comprises 51 kilometers of the E18 between Muurla and Lohja, which is the final phase of the Turku-Helsinki section. The project includes 76 bridges, eight interchanges and some five kilometers of twin tunnels.
Since 1997, Skanska Infrastructure Development through Nelostie Oy, has been a joint owner of Finland's first public-private partnership road concession, the expressway between Helsinki and Lahti, which Skanska constructed and also has responsibility for its operation and maintenance.
For further information please contact:
Gunnar Lundberg, Executive Vice President, Skanska Infrastructure Development, tel + 46 70 564 28 89
Anna Wenner, Press Officer, Skanska AB,
tel +46 8 753 88 99