Partnerschaften Deutschland ÖPP Deutschland AG December 2010 explains key elements of the PPP street lighting model.
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Leasing contract of 15 April 2015 between the municipality and a partnership between the installer, Electricidad y Tecnología S.A. de C.V. (Electrotec) and the financial institution, Solucash S.A. de C.V. Sofom E.N.R. (Solucash), regarding the replacement of luminaires and the strengthening of the light network infrastructure in Guadalajara. Private partner is responsible for the installation of the luminaires. Municipality leases retrofitted lights from private partner and makes monthly payments over the 10-year lease term to be financed through cost savings.
Street lighting infrastructure in Bhubaneswar, the capital of the Indian state of Odisha, is outdated, inefficient, and in poor condition. Small streets and residential areas have poor, if any, lighting. Resource inefficiencies also make it expensive, creating a burden on the city’s budget. The city’s municipal authority, the Bhubaneswar Municipal Corporation, asked for IFC’s assistance to design and structure the transaction, and manage a public-private partnership bid process to identify a qualified private sector partner to upgrade and manage the street lighting system.
RfP documents contain draft energy performance contract to be entered into by the local authority (Bhubaneswar Municipal Corporation - BMC) and the ESCO (Contractor). The draft contract is based on the shared savings model. The Contractor undertakes to enhance the existing street lighting infrastructure, install cost-effective modern lamp technology, feeder panels for automation and metering, and to operate and maintain the street lighting system covering approximately 20,000 light fixtures. The construction period is 8 months from the effective date of the contract.
From 2005 to 2012, 30% of PPPs signed by local governments (les collectivités locales) regarded street lighting. To assist local governments to develop PPPs in this sector, the Mission d’appui aux partenariats public-privé (MAPPP - the French PPP Unit) has provided model contractual provisions for street lighting PPPs together with commentary. The MAPPP provides also some information in English.
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PPIAF’s Sub-National Technical Assistance Program (SNTA) and its World Bank Group partners—the International Finance Corporation (IFC) and the Energy Sector Management Assistance Program (ESMAP)—have been working with the Brazilian municipalities of Belo Horizonte and Rio de Janeiro to bring energy-efficient investment to public street-lighting systems. More
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