HELSINKI--(BUSINESS WIRE)--Regulatory News:
YIT (HEX:YTY1V), VR Track and Pöyry have signed an agreement with the City of Tampere on the implementation of the Tampere light rail project in Finland. The revised cost estimate for the implementation stage is EUR 238.8 million, with YIT’s share amounting to approximately EUR 110 million. YIT records the project in the order backlog for the fourth quarter of 2016.
The first phase of construction will commence in the first half of 2017 and is expected to last until 2021. During this phase, the new rail line will extend 15 kilometers, from the city centre to Hervanta and to the Central Hospital, and a depot will be constructed in Hervanta. YIT will recognise project revenue based on the progress of construction.
According to the plans, the second phase of construction will take place in 2021–2024. It will expand the rail network from the city centre to Lentävänniemi.
The project will be implemented using the alliance model, with YIT, VR Track and Pöyry providing the service ordered by the City of Tampere. In the alliance model, the client, designers and contractors co-operate throughout the implementation.
“YIT’s renewed strategy emphasises project development in growth centres and focuses increasingly on the involvement of partners. The collaborative alliance model adopted in the Tampere light rail project matches this objective very well. The project is significant in terms of size. It also plays an essential role in the development of the Tampere region, in which YIT wants to be closely involved," says Jouni Forsman, Head of YIT’s Infra Services business division.
“Alliance partners’ close cooperation and commitment to high objectives of the project from the very beginning have made it possible to implement the tramway. Construction of tramway will be visible in the streets of Tampere, but the implementation plan drawn up together in the development phase and a strongly connected Alliance team will create excellent conditions for the smooth implementation of the project," says Harri Lukkarinen, Managing Director of VR Track.
"The representatives of Tampere, engineers and contractors of the light rail project have worked hard together for over a year to find the best solutions for the project. The implementation decision will realise this work for the benefit of Tampere, resulting in a smooth implementation of the project and a high quality light rail system. We at Pöyry are proud to support the strong development of the Tampere region," confirms Mikko Inkala, President of Pöyry's Infrastructure Design Unit.
Further information about the alliance model used in the Tampere light rail project is available here (http://www.yitgroup.com/en/media/why-is-the-alliance-contracting-model-considered-the-best-approach-to-delivering-the-tampere-tramline-project/).
Vice President, Investor Relations
Distribution: NASDAQ Helsinki, major media, www.yitgroup.com
YIT creates better living environment by developing and constructing housing, business premises, infrastructure and entire areas. Our vision is to bring more life in sustainable cities. We want to focus on caring for customer, visionary urban development, passionate execution and inspiring leadership. Our growth engine is urban development involving partners. Our operating area covers Finland, Russia, the Baltic countries, the Czech Republic, Slovakia and Poland. In 2015, our revenue amounted to nearly EUR 1.7 billion, and we employ about 5,300 employees. Our share is listed on Nasdaq Helsinki. www.yitgroup.com/en/
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