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Home > News > News archive - 2005

News archive - 2005

Printable version

Financial close reached on A1 motorway project in Poland

Friday, July 29, 2005

John Laing plc today announces that the Gdansk Transport Company ("GTC"), in which it holds a 29.69% stake, has reached financial close on the Euro700 million project to design, build, finance and operate the A1 motorway in Poland.

The A1 project comprises two phases: Phase 1, with a total project cost of Euro700 million is a 90 km new road from Gdansk to Nowe Marzy in Northern Poland, with a planned 60 km extension to the city of Torun at the southern end of the motorway. Construction of phase 1 will begin immediately with completion scheduled for 2008. The concession period extends for 34 years to 2039.
The payment mechanism for the project is predominantly availability based, with a minority shadow toll element. Arrangements for Phase 2 are expected to be finalised later this year.
Laing Roads, a wholly owned subsidiary of John Laing plc, co-owns GTC with Skanska BOT (Skanska AB Group's investment subsidiary), NDI S.A., a Polish property developer and construction contractor, and international road developer and operator Intertoll of South Africa. Laing's equity commitment for phase one is Euro11.5m (approximately £8m).

Commenting on the deal, Andy Friend, chief executive of John Laing plc,
said:

"We are delighted to have reached financial close with our partners Skanska, Intertoll and NDI on this exciting project, which is our first investment in Poland. This is an attractive market with long-term potential for infrastructure investment through public private partnerships. "

For further information please contact:

John Laing plc
Andy Friend, Chief Executive
Adrian Ewer, Finance Director
020 7901 3200

Finsbury Group
Edward Orlebar / Robin Walker
020 7251 3801

Notes to Editors

Notes on John Laing & Laing Roads

   * John Laing is the UK's listed market leader in PPP/ PFI infrastructure
     projects. It currently invests in 48 PPP/ PFI projects in the rail, roads
     and accommodation sectors, 24 of which are fully operational.

   * Laing Roads is a major developer, investor and operational manager for a
     wide range of PPP road, bridge and street lighting projects with a portfolio
     of 11 projects including: the M40, M6, A130, A55, Sirhowy Enterprise Way and
     the Severn River Crossing.

   * Laing Roads' growing international portfolio includes Tieyhtio Nelostie
     (Finland's first privately financed infrastructure project) and the
     E39 road
     (Norway's first PPP project), both in partnership with Skanska.

* Background to Polish PPP road projects

   * The first PPP project in Poland was the A2 road, from Swiecko at the
     German border to Konin, 180 km west of Warsaw. This is now operational as a
     real-toll road.