Skanska to Build Subway in New Delhi for SEK 2 Billion; Skanska's Share Will be SEK 800 M.

Business Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--May 22, 2001

Skanska has secured a major contract for the new subway system in New Delhi, India.

The total order is worth approximately SEK 2 billion, or INR 9.74 billion. Skanska's 40-percent share is worth approximately

The customer, Delhi Metro Rail Corporation (DMRC), is a newly established company owned jointly, with equal holdings, by the Government of India and the Delhi State Government.

Skanska is part of an international consortium that will be responsible for planning and construction of a 4.1 km-long concrete cut-and-cover, double-track tunnel and four new underground stations. The project is scheduled to be completed within 50 months.

The project will be 55-percent financed through a loan from JBIC in Japan, with the remainder provided by the Indian Government.

The work will be carried out by Skanska in a joint venture with Kumagai Gumi of Japan (40 percent) and HCC of India (20 percent). A design agreement will be made separately with UK consulting firm, Maunsell, which also produced the successful tender design.

The project is part of the 11 km-long subway section of a new 156-km public transport rail network for New Delhi. The entire rail transportation project has been assigned high priority and will contribute to resolving New Delhi's growing traffic congestion and air pollution problems. It will significantly improve the environment, traffic safety and accessibility in the Indian capital, which has a population of 10 million.

Following last year's acquisition of Kvaerner Construction, now Skanska UK, Skanska holds 64 percent of Cementation India. Skanska is currently the fifth-largest construction services company in the Indian market.

This and previous releases can also be found at www.skanska.com

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