Skanska-Laing Consortium has reached financial close for the Croydon & Lewisham Street Lighting PFI Project.

Skanska and John Laing will each invest £4.5 million, 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.

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.

The clients for the project are the London Borough of Croydon and the London Borough of Lewisham. Under the contract, the Skanska-Laing 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.

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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 £2 million per annum, the first two years of which will also be included in Skanska's order bookings for the second quarter of 2011.

Bill Hocking, Executive Vice President of Skanska UK said: "Today marks an important step in this project. We look forward to working with our partners, John Laing, and the Councils to deliver safer, energy efficient public lighting services for the people of Croydon and Lewisham."

(CD/GK)