Coal

Skanska invests SEK150m in Brazilian public-private power project

22 June 2005 – A consortium in which Swedish company Skanska owns a 35 per cent stake has been awarded a 20 year power purchase agreement to start generating electricity in the Brazilian state of Amazonas.

The Breitner consortium was awarded the contract by Manaus Energia, part of the state owned Eletrobras. It is expected to generate revenues of approximately SEK370m ($48.8m) per annum for Skanska and its Brazilian partners. Payments will be based on availability, and does not entail any market risk for the price of energy.

Two 60 MW plants will generate power for the Manaus region, which is independent of the national grid. Both plants should be operational by November 2005 and generating at full capacity by 1 January 2006.

Skanska will invest around SEK150m in the project, on top of the SEK85m it has already spent on the Fortaleza plant, which will be dismantled and the equipment moved to the location of the new power plants.

President of Skanska BOT, Simon Hipperson, said: “Brazil’s economy is growing strongly and the energy needs are increasing, making it an attractive market for us.”

The Fortaleza plant is being disassembled from where it has functioned as an emergency power plant for the state of Ceara for the past three years and will be transferred to Manaus where it will be reconstructed.