Skanska sells holding in Brazilian PPP project at a gain of SEK 550 M

Skanska has signed an agreement for the sale of its 50-percent equity interest in the Ponte de Pedra hydroelectric power plant in Brazil. The selling price of the equity is approximately SEK 1 billion, with a capital gain of SEK 550 M. The purchaser is the French Belgian energy company Suez-Tractebel, which is also acquiring Impregilo’s 50-percent interest. The buyer will assume the debt in the project company.

The agreement includes usual conditions regarding government approvals. These are expected to be achieved early 2008, by which the gain will be included in Skanska’s earnings.

Skanska Infrastructure Development has developed the Mato Grosso power plant in the form of a concession with the government.

"This project manifests the strengths of our integrated offering, from the initial development all through construction, investment and asset management in creating excellent value growth. This has also been enhanced by the strong Brazilian market and the demand for renewable energy," says Thomas Alm, Executive Vice president, Skanska AB, and acting President of Skanska Infrastructure Development.

The 176-MW power plant has been in operation since 2005. The construction project was implemented jointly by Skanska Latin America and Impregilo. Skanska Latin America has also been responsible for operation and maintenance of the plant since its start-up.

This is Skanska’s second sale of a Public Private Partnership (PPP) project this year. Earlier in 2007, the company’s remaining share of the harbor project at Maputo in Mozambique was sold at a capital gain of approximately SEK 70 million. Skanska Infrastructure Development is now engaged in 14 PPP projects. The most recent is Manor Hospital, a UK hospital project in Walsall for which a financing agreement was concluded earlier this autumn.

Skanska Infrastructure Development focuses on Public Private Partnership projects to satisfy community needs for social infrastructure, such as hospitals, schools and roads. The unit is active throughout the entire chain, from investment and design to operation and service. Skanska ID has operations in the UK, the Nordic region, North and South America, Poland and the Czech Republic. The estimated market value of the project portfolio at year-end 2006 was SEK 6.3 billion.



For further information please contact:

Anders Lilja, Senior Vice President, Investor Relations, Skanska AB,
tel +46 8 753 88 01
Peter Gimbe, Press Officer, Skanska AB, tel +46 8 753 88 38.
Direct line for media: tel +46 8 753 88 99.