Nordic Business Report-April 27, 2006-Skanska closes deal for Barts and The London Hospitals
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The Swedish construction group Skanska said on Thursday (27 April) that it had, in consortium with Innisfree and Equion, reached financial close for the financing, design, construction and operation of Barts and The London Hospitals.
The contract is under the UK Government's programme for Public Private Partnerships (PPP), Private Finance Initiative (PFI), the company said.
Under the contract Skanska would receive a construction contract amounting to some SEK13.6bn and a Hard FM contract valued at some SEK102m per year during the 42-year concession period.
Skanska would also commit to an investment of some SEK650m, corresponding to a 37.5% interest in the project company.
The signed financial close yields a net cash flow for the Skanska Group of about SEK1.1bn, which would flow in the second quarter.
One Swedish krona (SEK) is worth approximately 0.07 British pounds (GBP).
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