PFI Street Lighting & Traffic Signal Project Update

1. PFI Street Lighting & Traffic Signal Project Update

2. Why PFI? – Blackpool’s issues

3. Blackpool’s Issues - Infrastructure • Over 70% of street lights are “life expired” • Only 14% of back streets are lit • Over 44% of traffic signal sites require ‘urgent’ replacement / upgrading

4. PFI Scope • Street lighting columns • Adopted back streets • Illuminated signs and bollards • Traffic signals

5. PFI Scope • * Programming is based upon asset condition • Worst condition first • Alignment of lighting columns/traffic signal junctions

6. PFI – Current position

7. Procurement Process to Date • Three interested bidders submitted detailed solutions – May ’08 • Refined solutions submitted – Aug ’08 • Two bidders will be invited to submit final tenders • CLP (Community Lighting Partnership) • TVL (Tay Valley Lighting) • De-selected bidder - NLP

8. Financial Information

9. Credit Crunch Impact • Banks reluctant to lend in current economic climate • Financing terms are changing daily • Increasing costs of raw materials / energy / supplies • Regular monitoring • Sensitivity Analysis

10. Contract Monitoring • PFI Contract Manager Appointed – September ’08 • Co-location with PFI Service Provider • Self-monitoring contract • Performance Standards – Output Specification • Incentives / Penalties - Payment Mechanism • Milestones • Independent Certifier • Monthly monitoring meetings • PFI Strategic Board

11. Typical Residential Street – Prior to PFI Typical Residential Street – Post PFI Pre-Post PFI Lighting

12. Devonshire Road Lighting Devonshire Road – Recent Scheme

13. Traffic Signals Insert photo

14. What next? • Appointment of Preferred Bidder by Executive • Stakeholder Consultation • Future presentations to O & S

15. Any questions?