Reconstruction, Management, and Maintenance of Street Lighting and Other Public Facilities, Juvignac, France Public Private Partnership

Reconstruction, Management, and Maintenance of Street Lighting and Other Public Facilities, Juvignac, France

On this page: A case study on Reconstruction, Management, and Maintenance of Street Lighting and Other Public Facilities, Juvignac, France. Find more at the Municipal Public-Private Partnership Framework - Project Summaries section for brief summaries of around 100 projects from around the world, examples of successes and challenges, as well as innovative ideas on solutions, or visit the Guidelines on Innovative Revenues for Infrastructure section.

Project Summary:

Background

Due to a significant increase in population, the city of Juvignac in France needed to adapt its infrastructure services quickly and efficiently. To this end, it decided to pursue a PPP to renovate, manage, and maintain its public lighting installations, traffic lights, video surveillance, and the civil engineering works for the city’s high-speed communications network.

Project Structure

Through a competitive bidding process initiated in 2013, a private company called SPIE Sud-Ouest was awarded a PPP contract with a duration of 18 years and an estimated worth of EUR 8.8 million (or USD 10 million). The winning bidder was selected based on total proposed cost, the time required for implementation, and relevancy to the energy management and long-term development plans of the city. Under the PPP agreement, the private partner is responsible for replacing the city’s street lighting in two phases, as well as upgrading the traffic lights at six intersections, installing a video surveillance network comprising 12 cameras connected to a PC, and completing 9.4 km of civil engineering works for the high-speed communications network.

SPIE Sud-Ouest will provide maintenance with guaranteed results throughout the contract. Regarding the first works phase, for example, the street lighting failure rate is not to exceed 0.5 percent, meaning no more than 10 of 2,000 lighting points may be out of order at the same time, and outages should be remedied in less than one hour.¹

Lessons Learned

Tying in the availability payment to the performance of the private company provides a strong incentive for proper operation and maintenance work. However, it also means the municipality must have adequate project management and monitoring mechanisms in place, to ensure it receives the full benefit of the project.

Footnote 1: Source(s) http:// www.spie.com/en/ spie-sud-ouest-andtown- juvignac-heraultsign- public-privatepartnership accessed 8 February 2019.

Note(s):

The Guidelines on Innovative Revenues for Infrastructure (IRI) is intended to be a living document and will be reviewed at regular intervals. They have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions.

To find more, visit the Innovative Revenues for Infrastructure section and the Content Outline, or Download the Full Report. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.