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    Skanska Secures Large Reconstruction Project in World Trade Center Area

January 26, 2006 02:38 AM US Eastern Timezone

Skanska Secures Large Reconstruction Project in World Trade Center Area - Skanska's Share of Contract is Approximately USD 358 Million, About SEK 2.7 Billion

STOCKHOLM, Sweden--(BUSINESS WIRE)--Jan. 26, 2006--Skanska is one of the leading companies in the joint-venture that has been contracted to construct the World Trade Center Transportation Hub for commuter rail traffic in the Ground Zero area in New York City. It is estimated that the contract will total USD 1.1 billion divided into two stages of USD 200 M and USD 900 M. Skanska's share amounts 32.5 percent, corresponding to about USD 358 M, approximately SEK 2.7 billion. Skanska's share of the total contract amount will be included in portions throughout the year. The order is one of Skanska's largest in the US to date.

The customer is the Port Authority of New York and New Jersey, which is one of Skanska's repeat customers in New York. In 2003, Skanska completed construction of JFK Airport's Light Rail System for the same customer. The successful completion was a decisive factor for the customer in again selecting Skanska for a major project.

The project includes extensive underground work such as the construction of rail tunnels, including track laying and the installation of power, communications and signal systems as well as new climate-controlled train platforms and mezzanines. The project also includes about 1,000 meters of pedestrian tunnels that will link with the PATH train stations and facilitate transit connections with other train and subway lines. A total of 13 rail and subway lines including the PATH trains and New York City Transit trains will converge at the World Trade Center Transportation Hub.

The facility's spectacular station facility is being designed by the world-renowned architect Santiago Calatrava. Work will commence on the project in early 2006 and beneficial occupancy is expected by 2009.

Skanska and Fluor are majority shareholders of the joint-venture Phoenix Constructors. The other members of the joint-venture are Granite Construction Inc. and Bovis Lend Lease. Fluor Enterprises is managing partner of the joint venture.

The project is financed partly by the Federal Transit Administration, with funds earmarked for the reconstruction of Lower Manhattan, and partly by the Port Authority of New York and New Jersey. Skanska is already operating in the area as the general contractor on the construction of the Dey Street Concourse Structural Box, which comprises new pedestrian tunnels and entrances to and between the subway lines at Dey Street. The Dey Street Concourse is part of the Fulton Street Transit Center, which will connect to the World Trade Center Transportation Hub when it is completed. The design-build project commenced in 2005 and is valued at USD 133 M or approximately SEK 1 billion.

The World Trade Center Transportation Hub and the Dey Street Concourse Structural Box are two of the major projects in the reconstruction of Lower Manhattan's infrastructure system, which was severely damaged after the 2001 terror attacks. Construction activities at both sites must be carefully monitored due to the sensitive nature of where work is occurring. This information was brought to you by Waymaker http://www.waymaker.net

This and previous releases can also be found at www.skanska.com

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