STOCKHOLM, Sweden, Feb. 11, 2005 (PRIMEZONE) -- Skanska has secured an alliance contract to replace some 3,200 kilometers of gas distribution mains in the North London area. The Skanska joint venture's share of the contract is valued at GBP 400 million, approximately SEK 5.2 billion, of which Skanska's share is SEK 2.6 billion. The customer is Transco Plc, a subsidiary of National Grid Transco (NGT).
The assignment is to undertake management, planning, design, construction and replacement of around 400 kilometers of gas-distribution mains per annum in and around the North London area.
Under the alliance with NGT, Skanska will carry out the works in a 50/50 joint venture with McNicholas Plc for a period of eight years. The alliance is estimated to provide Skanska contracts totaling approximately GBP 25 million, SEK 330 million, per year during the contract period through 2013, totaling around GBP 200 million, SEK 2.6 billion. Around GBP 160 million, SEK 2.1 billion, is included in the order bookings for the first quarter of 2005. There will subsequently be the possibility of an extension of a further five years.
National Grid Transco Plc (NGT) is a leading international energy infrastructure business. It is the largest utility in the UK. Through National Grid, the group owns and operates the electricity transmission network in England and Wales, and through Transco, it owns and operates Britain's gas transportation network, where gas is delivered to some 21 million homes, offices and factories in Britain.
Skanska is one of the UK's leading construction companies. The company reported annual sales totaling slightly more than SEK 11 billion in 2004, with about 3,400 employees. The company is active in building construction and infrastructure projects, including utilities for water, energy and telecom. Skanska is the largest construction company in the British program for Public Private Partnerships, PPP/PFI (Private Finance Initiative), having projects, completed or underway, totaling GBP 2 billion.
For further information please contact:
Tanya Barnes, Head of Communications, Skanska UK tel +44 1923 423 905 Anna Werner, Press Officer, Skanska AB, tel +46 8 753 88 99
This and previous releases can also be found at www.skanska.com
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