STOCKHOLM, Sweden, Nov. 7, 2005 (PRIMEZONE) -- 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.
Skanska is one of the world's leading construction groups with expertise in construction, development of commercial and residential projects and public-private partnerships. The Group currently has 54,000 employees in selected home markets in Europe, in the U.S. and Latin America. Sales in 2004 totaled SEK 121 billion, USD 17 billion.
This and previous releases can also be found at www.skanska.com
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