Public Private Partnership is taking hold in many parts of the world where the need for infrastructure outstrips available public sector finance. By investing in the companies set up to deliver these facilities, Skanska provides the finance and expertise for development, design, construction and operations.
In Public Private Partnership projects Skanska is involved throughout the development chain - from design and financing to construction, operation and maintenance. Taking complete responsibility in this way optimizes cost efficiency in both construction and operational phases.
Skanska sees the selection process as key. The projects must be within the product segments and markets where Skanska has expertise and experience, and naturally must also provide the required return. Careful analysis of risk and opportunities takes place in close cooperation with the Skanska units responsible for construction, and Skanska then focuses on a limited number of projects.
PPPs bring together consortia including developers and investors, constructors and other service providers to finance, create and operate assets - such as highways, hospitals, schools and power plants - through long term contracts.
These development consortia and the Special Purpose Companies (SPCs) that they form are designed to deliver services according to strong contractual agreements that are negotiated with their public sector clients. These contracts generally last for between 15 and 50 years.