STOCKHOLM, Sweden, April 14, 2004 (PRIMEZONE) -- Skanska, in a consortium with the British Mill Group, has signed a contract and financing agreement for two school projects within the British PFI (Private Finance Initiative) program.
The contract is to design, build, operate and maintain two secondary schools in Bexley, in South East London. The total contract value amounts to about SEK 500 M (GBP 36 M).
The Skanska Mill Group consortium has been contracted by the London Borough of Bexley. Skanska is participating as builder and part-owner of the Skanska Mill Group consortium.
Skanska UK has received the entire design and construct contract, valued at GBP 29.3 M, about SEK 407 M, which is included in order bookings for the second quarter of 2004.
The Skanska Mill Group consortium is also responsible for facilities management services for the buildings for 25 years. An external supplier has been contracted for this assignment.
Skanska BOT holds a 50-percent ownership interest in the Skanska Mill Group consortium. Skanska BOT's investment will amount to about GBP 2 M, approximately SEK 28 M.
These are the largest of the 6 school projects within the British PFI program in which Skanska is participating as the builder. A further 14 schools have also been built by Skanska in recent years under a framework agreement with local authorities.
The contract covers the Bexleyheath and Welling secondary schools, with places for 2,100 and 1,500 students, respectively. Bexleyheath School is one of the largest schools of its type in London. The project involves development and construction of new teaching blocks and sports halls totaling 17,500 square meters as well as an extensive renovation of the existing school facilities of 12,000 square meters. The project will begin later this spring and is scheduled to be completed during 2005. The schools will remain open during the entire construction period, including use of temporary accommodations.
"This scheme will provide much needed new facilities at two of our largest schools. It will assist in raising education standards within the borough and provide the modern facilities our pupils and teachers deserve," said Councillor Perrin, Bexley's Cabinet Member for Education and Lifelong Learning.
"The Bexley Schools scheme further reinforces Skanska's commitment to building better learning environments and delivering state-of-the-art facilities for pupils at these two schools in Bexley. We have worked closely with the schools and the local community in developing the designs and look forward to successfully completing the projects," said Simon Hipperson, Executive Vice President Skanska UK.
Skanska is one of the leading construction companies in the British PFI program. Skanska has assignments valued at more than GBP 2.5 billion, about SEK 35 billion.
Ongoing PFI projects include the hospitals in Derby and Coventry, valued at SEK 6.4 billion (GBP 462 M) and SEK 6.7 billion (GBP 484 M), respectively.
Last year, Skanska and Innisfree also executed a preferred bidder agreement with Barts and London NHS Trust for the UK's largest PFI hospital project, the two London hospitals, St. Bartholomew's Hospital (Barts) and The Royal London Hospital. The construction assignment could amount to about SEK 14 billion (GBP 1 billion), which would consequently be the largest project in Skanska's history.
Pictures available at www.skanska.com/londonschools
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