Skanska in line for US$ 3.6 billion airport PPP

LaGuardia Gateway Partners, a consortium including Skanska has been named preferred bidder for a US$ 3.6 billion terminal replacement project at LaGuardia Airport in New Jersey, US.

The public private partnership (PPP) contract to be awarded by the Port Authority of New York and New Jersey will involve taking over operations of the existing Central Terminal Building and designing, building, financing, operating and maintaining a new replacement terminal for a lease term through 2050.

The next step in the process will see LaGuardia Gateway Partners open negotiations with the Port Authority to finalise the lease agreement and begin the process of achieving commercial and financial close. The deal is expected to close next year and Skanska said construction work would start immediately after this. The project is expected to be financed using equity, debt, passenger facility charges and retail & airline revenues.

Skanska’s said its share of the equity investment will be up to 40% and the share of the construction contract is 70%, which will be divided between Skanska USA Building and Skanska USA Civil.