Skanska wins road building projects in Czech Republic

Sweden's Skanska has won two road building contracts in the Czech Republic for CZK 3,31 billion (€ 133 million).

The largest of the two contracts is the construction of a new section of the R49 motorway connecting eastern parts of Czech Republic with Slovakia. Skanska's share of the CZK 6 billion (€ 241 million) contract totals CZK 2,35 billion (€ 95 million), which has been included in its order bookings for the third quarter.

The project, for the Czech Highway Authority (CHA), will be implemented by a consortium, of which Skanska's share accounts for 39%. The CHA is financing the project with support from the state fund for transport infrastructure.

The section of the R49 Motorway will be 16,4 km long, replacing the current I49 main road which passes through several towns. It connects to the D1 motorway from Prague and R55 motorway that will lead south to the town of Hodonín. The project comprises two fly-over crossings and 31 bridges.

Work will commence immediately and the motorway will open for drivers in September 2011 with remaining works being finished by July 2012.

The second contract, to construct a section of the new ring road around Prague, totals CZK 960 million (€ 38,7 million), will be included in its order bookings for the third quarter.

The contract, worth about CZK 4,2 billion (€ 169 million), will be implemented by a consortium, of which Skanska's share accounts for 23%. The CHA and the state are financing the project with support from the state fund for transport infrastructure.

The project, a 9 km section of four-lane expressway, includes 22 bridges and three fly-overs. The expressway will mainly be constructed outside the developed area southeast of Prague. It will connect to another section of the ring road that Skanska is currently also constructing.

Work will commence immediately and both of the sections are scheduled to be completed in 2010.

Skanska Czech Republic, the largest construction company in the Czech Republic, had sales of SEK 11 billion (€ 1,13 billion) in 2007. The company has about 7000 employees in Czech Republic and Slovakia.