Skanska to Construct Billion Dollar Drinking Water Plant in New York

May 14, 2007

Skanska has been hired to construct the Croton Water Filtration Plant in New York. The total contract amount is $1.3 billion, of which Skanska has 80 percent. Skanska’s share of the order amount is being included in order bookings for the second quarter.

The customer is the New York City Department of Environmental Protection. The Croton Water Filtration Plant is one the facilities that supplies the City of New York with all drinking water. The plant, with a capacity to treat 1.2 million cubic meters of water per day (320 MGD), is located at the Mosholu golf course in the Bronx.

Skanska’s assignment includes both the construction and installation work. Most of the plant is constructed in concrete covering a footprint area of 35,000 square meters. The plant is being built on four levels underground. Skanska is responsible for the concrete work, but not excavation. Some 200,000 cubic meters of concrete and 27,000 tons of reinforcing steel are expected to be used.

Skanska’s project includes installation of machinery and piping as well as control equipment. The project is a turnkey delivery and Skanska will also be responsible for start-up and commissioning, but not for meeting projected design criteria of the treated water.

The project is being carried out in a joint venture with Tully Construction, which has the remaining 20 percent of the contract amount.

The project starts later this summer. Construction work is scheduled to be completed in 50 months, and the start-up phase should to take an additional six months.

This is Skanska’s largest project ever in the U.S. The second largest project is the New Meadowlands Stadium being built for the New York Jets and New York Giants. This contract amount is $998 million.

Skanska is currently building and upgrading six water treatment plants in New York. The total order value of the projects under way is about $1 billion, excluding the new contract.

Source: Skanska