Skanska, through a preferred-bidder contract, has been selected for developing, constructing and maintaining three schools for Essex County Council, in the UK.
The project will be conducted within the UK program for public private partnerships, PFI (Private Finance Initiative), which means that Skanska will assume responsibility for the financing, design and construction of the new schools, as well as the maintenance of the schools for a total of 26 years commencing in 2011.
Skanska Infrastructure Development’s investment is estimated to amount to approximately GBP 6 M, about SEK 70 M, corresponding to a majority holding in the consortium that is responsible for the project. The consortium also includes RM plc, which is responsible for the schools’ information and communications systems. RM plc is an international provider of education solutions and the UK’s leading provider of ICT software, systems and infrastructure for schools.
This PFI project in Essex initially comprises three new schools to be developed in cooperation with the local authorities within the Essex Local Education Partnership (the Essex LEP) of which the Skanska-RM consortium holds approximately a 50 percent share. The partnership covers a total period of ten years and further schools will be developed in future phases.
The construction assignment will be conducted by Skanska UK, which will also design and build a fourth school in addition to the three in this PFI agreement. The contract for the four schools is estimated to amount to approximately GBP 70 M, approximately SEK 800 M.
Financial close for this contract, including the completion of negotiations and financing, is expected during 2010.
Once this is finalized, the size of the company’s investment and construction contract will be established. This will then be announced in a press release along with information on which quarter the construction contract will be included in Skanska UK’s order bookings and the timeframe for implementation.
Skanska already operates the UK’s first LEP through the Bristol BSF program and has investments in two other PFI schools projects in the UK. Skanska’s other major PFI projects in the UK include the widening of the M25 ring road in London, the street lighting network in Surrey and several large hospitals, such as Barts and The London Hospitals.
Skanska Infrastructure Development is a leader in the global Public Private Partnerships (PPP) market. The business unit invests in, develops and operates roads, hospitals, schools, power plants and other social infrastructure in partnership with the public sector.
Skanska UK reported revenues of SEK 17.9 billion in 2008, with about 4,900 employees. The company is active in building and civil construction, utilities and building services.