STOCKHOLM, Sweden, May 21, 2002 (PRIMEZONE) -- As part of a construction consortium, Skanska has been contracted to develop a concept for design, construction and operation of a turnkey wastewater treatment plant in St. Petersburg, Russia. The construction contract is valued at EUR 128 M (SEK 1,179 M). Skanska has one-third of the construction contract through a 33-percent ownership interest in SWTP Construction Oy, a Finnish construction company in which Skanska, NCC and YIT hold equal ownership.
The contract will be included in order bookings when financing has been resolved, most likely in the third quarter of 2002
Skanska also owns a 14-percent interest in Nordvod, the Russian ownership company. The Skanska Group's investment amounts to EUR 2 M, about SEK 18 M.
The Southwest Wastewater Treatment Plant (SWTP) will be constructed in accordance with a Public-Private-Partnership model, with the municipality of St. Petersburg and the private companies working together in terms of financing and ownership. Vodokanal, the city of St. Petersburg's water company, will own 40-percent of Nordvod, with other owners consisting of Nordic-Environment Finance Corporation, NEFCO (20 percent) and the consortium comprising Skanska, NCC and YIT, which will hold a combined ownership interest of 40 percent.
The wastewater treatment plant is the first project to be implemented under the framework of Northern Dimension Environmental Partnership (NDEP), an international environmental program, initiated by the EU Commission, countries around the Baltic Sea and international financial institutes. The project will be financed through contributions from Denmark, Finland and Sweden and the EU's Tacis program as well as through loans from the Nordic Investment Bank (NIB), the European Bank for Reconstruction and Development (EBRD), Finnfund and Swedfund.
Construction will begin as soon as the financing structure is finalized, and the required construction time is estimated at about 2.5 years. The SWTP Construction consortium is responsible for the entire project, including design, construction, installation and procurements. The consortium will also be involved in plant operations for a period of 12 years. The operating assignment is not included in the construction contract of EUR 128 M.
The wastewater treatment plant in southwestern St. Petersburg will have a capacity corresponding to 700,000 persons. Wastewater that passes through the treatment plant will be treated in three stages - mechanical, biological and chemical. The plant, accordingly, will meet the requirements established by Helcom, the Helsinki Commission for Baltic Sea water. St. Petersburg is among the 132 sources of contamination identified by Helcom around the Baltic Sea.
"We are pleased to contribute toward improving the quality of Baltic Sea water. Skanska's combination of technical and financial know-how makes us well-prepared to manage these types of major, complicated projects," says Bert-Ove Johansson, President of Skanska BOT.
"The market for environmental projects in Russia is growing and Skanska's leading-edge expertise will be increasingly in demand," says Martti Rautee, President of Skanska East Europe, which is included among the leading construction services companies in Russia in terms of building to western standards.
For further information please contact:
Martti Rautee, President, Skanska East Europe Oy, tel +358 9 6152 2203 Veli-Matti Kullas, Senior Vice President, Skanska East Europe Oy, tel +358 9 6152 2448 Peter Gimbe, Press Officer, Skanska AB, tel +46 8 753 88 38 Tor Krusell, Senior Vice President, Corporate Communications, Skanska AB, tel +46 8 753 87 47
This and previous releases can also be found at www.skanska.com
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