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Skanska to update UK electricity network for about SEK 1.3 billion (GBP 100 M)

Press release 24/10/2006 00:00 CET

Skanska has been awarded a contract to support the upgrading and renewal of the UK’s electricity transmission network. Skanska’s share of the five-year contract is valued at around GBP 100 M, about SEK 1.3 billion, of which GBP 40 M, SEK 540 M, is being included in order bookings for the fourth quarter. The customer is National Grid.

National Grid has announced preferred partners for six new collaborative alliances that include contracts to manage, plan and carry out the updating of the electricity transmission network and substations across England and Wales. An alliance of Skanska UK, AREVA and Mott MacDonald is responsible for the South East of England.

The initial contract length is five years, with a potential extension for a further five years.

In the UK, Skanska is involved in a number of major utility schemes including the service, maintenance and upgrading of telecom networks as well as supply networks in the electricity, gas and water sectors. Skanska is also part of National Grid’s alliance responsible for the upgrading of gas distribution mains in the North London area.

National Grid is one of the world’s largest utilities, focused on delivering energy safely, reliably and efficiently. The company owns and operates the high-voltage electricity transmission network in England and Wales and the gas distribution system throughout UK.

Skanska UK reported revenues of SEK 10.7 billion in 2005, with 3,400 employees. The company is active in building construction and civil engineering as well as utilities and building services. Skanska also is a leader in the UK’s Private Finance Initiative programme (PFI).