STOCKHOLM, Sweden, June 22, 2005 (PRIMEZONE) -- Skanska and its Brazilian partners have signed an agreement for the delivery of electricity in Manaus, in the state of Amazonas, Brazil. The agreement is between the Breitener consortium, in which Skanska BOT holds a 35-percent interest, and the regional power company Manaus Energia, part of state-owned Eletrobras. The 20-year contract will generate revenues to the consortium of approximately SEK 370 M per annum.
The electricity will be generated in two power plants, each rated at 60 MW, with start-up no later than November this year and in full operation by the first of January 2006. The payments will be based on availability, and does not entail any market risk for the price of energy.
The power plants will be built using equipment from Breitener's existing power plant in Fortaleza, Brazil, which has successfully functioned as an emergency power plant for the state of Ceara for the past three years. This contract expired earlier this spring and the equipment is now being moved to the new plants in Manaus.
Skanska's share of the additional investments will be about SEK 150 M. Skanska's current investment in the Fortaleza plant amounts to about SEK 85 M.
The Fortaleza plant is being disassembled and transferred to be reconstructed in Manaus. The work that is now under way is being carried out by local contractors with technical supervision from Skanska Latin America, which has been commissioned to provide project support.
The energy requirement is substantial in the Manaus region that is not linked to the national power grid.
"Brazil's economy is growing strongly and the energy needs are increasing, making it an attractive market for us," says Simon Hipperson, President of Skanska BOT. "We have a strong local consortium, through which we have demonstrated that we can supply electrical power at competitive rates as well as deliver solid earnings."
With its 35-percent interest, Skanska BOT is the largest single owner in the Breitener consortium, which includes the Brazilian companies Petrobas (30 percent), Thermes (24 percent), Orteng (5.5 percent) and Enerconsult (5.5 percent).
Skanska BOT develops and invests in infrastructure projects within public-private partnering, focusing on Europe, North and South America as well as the Nordic region. The portfolio includes health and education facilities as well as power and highway projects. Operations focus on creating long-term sustainable solutions in which Skanska is responsible for the entire process, from arranging financing to design, construction and operation. Skanska is the market leader in the U.K. in the PFI (Pubic Finance Initiative)/PPP (Public Private Partnership) sector.
Skanska is one of the world's leading construction groups with expertise in construction, project development of commercial and residential projects and public-private partnerships. Skanska is committed to finding innovative solutions by cooperating closely with customers and combining the company's international expertise with local presence. The Group currently has 53,000 employees in selected home markets in Europe, in the US and Latin America. Sales in 2004 totaled SEK 121 billion.
This and previous releases can also be found at www.skanska.com
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