Skanska-Laing consortium has reached Financial Close for Croydon & Lewisham Street Lighting private finance initiative (PFI) project worth £74M.
Skanska and John Laing will each invest £4.5M, and Skanska will receive a construction contract worth £74 million, which will be included in the Skanska order bookings for the second quarter of 2011.
The clients for the project are the London Borough of Croydon and the London Borough of Lewisham. Under the contract, the Skanska-Laing - a 50/50 consortium - will take responsibility for the design, build, finance and operation of the stock of lighting columns and illuminated street furniture across the boroughs of Croydon and Lewisham for a period of 25 years starting in August 2011.
This is the second street lighting PFI that the consortium is involved in, following financial close of the Surrey Street Lighting project at the end of 2009.
Skanska, which has combined its experience in infrastructure services, utilities and public realm works will be responsible for the design, installation and ongoing operations works on the project. During the first five years, the team will replace approximately 38,000 street lights and 8,000 street signs and bollards. Work also includes the refurbishment of a further 4,000 street lights.
In addition, Skanska will be responsible for the operation and maintenance of the street lighting stock, including the provision of help desk services and emergency response during the life of the project valued at around £2M per annum, the first two years of which will also be included in Skanska’s order bookings for the second quarter of 2011.
Under the contract the team will provide new improved and energy-efficient street lighting across the boroughs, which will directly support better road safety, deliver an improved night time environment and economy and help reduce street crime and anti-social behaviour.
“We look forward to working with the Councils and Skanska to ensure communities within the Boroughs of Croydon and Lewisham will have an efficient, ‘best in class’ and value for money street lighting service,” John Laing’s Head of Transport Andy Pearson.