LEMMINKÄINEN CORPORATION INVESTOR NEWS 16 DECEMBER 2015 AT 10:30 A.M.
LEMMINKÄINEN TO BUILD SCHOOLS AND DAY-CARE CENTRES IN PORVOO USING THE PPP MODEL
Lemminkäinen will build schools and day-care centres in Porvoo, in southern Finland, using the PPP model. The project includes schools and day-care centres in Gammelbacka, Kevätkumpu, Toukovuori, Tolkkinen and Peippola areas. Construction will begin in spring 2016 and the schools and day-care centres are scheduled to be completed in 2017 and 2018. The total combined value of the projects is approximately EUR 60 million, including both the investment cost and the costs for the subsequent service period.
The contract includes the design and construction of the buildings. Lemminkäinen will also be liable for the buildings’ maintenance, upkeep, user services and basic renovation investments during the service contract for the service period of 20 years.
“Our construction will combine architectural and pedagogic planning. Our solution will provide significantly more space for learning, activities and social interaction compared to traditional school and day-care facilities,” says Pauli Mäkelä, Executive Vice President, Building construction, Finland.
“Indoor air quality problems have been observed at several schools and day-care centres in Porvoo in recent years. Renovating these buildings no longer makes sense. Instead, they will be replaced with new buildings. Furthermore, new residential areas in Porvoo create demand for new day-care centres. The PPP model means that we will have a warranty period of 20 years for the buildings, compared to just two years under the traditional model,” says Tony Lökfors, Project Manager at the City of Porvoo.
Lemminkäinen is currently building two schools in Hollola, in southern Finland and one school in Pudasjärvi, in northern Finland, using the PPP model. The same model is also used for a care facility that is presently under construction in Pudasjärvi. The PPP model was used in the Kastelli community centre project completed last autumn in Oulu, in northern Finland and four schools and a day-care centre built in 2011 - 2013 in Kuopio, in eastern Finland.
Executive Vice President, Building construction, Finland
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Together with our customers, we create conditions that make living, working and travelling functional, safe and healthy. We operate in Northern Europe and employ about 5,600 professionals. In 2014, our net sales were about EUR 2 billion. Lemminkäinen Corporation’s share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com