Kvaerner quits PFI

Kvaerner has shocked the industry by selling its private finance initiative companies. On Monday, it announced the sale of Kvaerner Corporate Developments (KCD) and Kvaerner Investments (KI) to Australian investment bank Macquarie for US$123 million (£78 million).

KCD and KI were engaged in the development and financing of infrastructure projects world-wide such as the A1/M1 link road in Yorkshire, the Birmingham Northern Relief Road and the Tagus bridge in Lisbon, Portugal.

The move is part of the Anglo-Norwegian conglomerate's restructuring programme which was announced in April. The group said it does not intend to be "a major investor in infrastructure projects" but will continue to be involved in the construction side.

The sale has raised speculation as to the future of Keith Clarke, chief executive of Kvaerner Construction. Clarke is a keen proponent of PFI and an acknowledged expert on the subject. One PFI expert commented: "I would not be surprised if he was not headhunted to join another company."

At the CJ50 Awards event recently, Clarke said: "Building better, building safer and building quicker was being achieved, largely in PFI projects rather than in other contracts."