The Kronoberg region in southern Sweden has announced the cancellation of the phase 1 contract for the planning and design of a new emergency hospital in Växjö.

The reason for cancellation has not been revealed by the companies.

The contract had been awarded to Sweden-based construction and development company Skanska.

The estimated Skr1.2bn cancellation will reduce Skanska's Swedish order bookings in the fourth quarter of 2023.

In August 2022, Skanska and Kronoberg entered an agreement on phase 1 of Växjö’s new hospital project.

Phase I of this strategic partnership included preconstruction works.

The partners had previously agreed on a feasibility study for the new hospital, which was intended to replace the existing facility in Växjö.

The project was to take place in three phases: a feasibility study (phase 0), design (phase 1) and production (phase 2). Phase 1 was scheduled to commence in August 2022 and be finished in 2029.

The overall area of the project was to be135,000m².

In October 2022, Skanska’s subsidiary Skanska Sverige awarded a contract for the project to LINK Arkitektur, a wholly owned subsidiary of Multiconsult, and Danish architect Arkitema.