Skanska Awarded Puerto Rican Pipeline for $74 Million



Skanska has been contracted to build a gas pipeline in Puerto Rico. The contract amount is U.S. $74 M, about SEK 475 M, which is included in order bookings for the first quarter of 2008. The customer is the government power company, Puerto Rico Electric Power Authority (PREPA), a new client for Skanska. Construction on the pipeline is anticipated to begin in February, 2008.

The project comprises a 42 mile/67-kilometer pipeline with a diameter of 20 inches, about 0.5 meters. Skanska is responsible for designing, permitting, construction, commissioning and start-up. The pipeline will deliver natural gas from EcoElectrica terminal in Penuelas to a combined cycle plant in Aguirre in southern Puerto Rico.

"We chose Skanska to build our first natural gas pipeline based on the breadth of their experience and track record in delivering projects on time and within budget," said Jorge Rodriguez, executive director of the Puerto Rico Electric Power Authority.

The project is being carried out in a 50/50 joint venture between Skanska USA Building and Skanska Latin America. This assignment is the result of the combined strengths and sharing of knowledge and expertise between Business Units – in this case the local presence and know-how of Skanska USA Building, coupled with the technical expertise and experience of Skanska Latin America.