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STREET LIGHTING & TRAFFIC SIGNALS PRIVATE FINANCE INITIATIVE. INFRASTRUCTURE. 16,500 Street lighting columns 2,050 Traffic signal points 1,500 Illuminated signs 800 Illuminated bollards. THE PROBLEM. Asset condition Maintenance backlog Perceptions of crime Need for investment
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STREET LIGHTING & TRAFFIC SIGNALS PRIVATE FINANCE INITIATIVE
INFRASTRUCTURE • 16,500 Street lighting columns • 2,050 Traffic signal points • 1,500 Illuminated signs • 800 Illuminated bollards
THE PROBLEM • Asset condition • Maintenance backlog • Perceptions of crime • Need for investment • Shortage of funding
OPTIONS CONSIDERED TYPES OF PROCUREMENT: • In-House provision • Traditional Term Maintenance • Joint Venture • Private Finance Initiative
PRIVATE FINANCE INITIATIVE WHAT IS IT?
PFI • Central Government Support (credits) • Public Private Partnership where capital intensive investment required • Transforms the Council from owner & operator to purchaser of a service • Use of private sector expertise & efficiencies
PFI HOW DOES IT WORK?
PFI • 25-year contract • 5-year Core Investment Period • Ongoing maintenance • Performance driven - Outputs • Transfer of risk to most appropriate party
PFI WHAT WILL BE DIFFERENT?
PFI • Large-scale upgrade of street lighting and traffic signals • Column positioning • Improved lighting levels • De-cluttering • Robust monitoring and maintenance regime • Improved streetscape
Typical Residential Street – Prior to PFI Typical Residential Street – Post PFI EXPECTATIONS
Devonshire Road Devonshire Road – Recent Scheme EXPECTATIONS
PFI PROCUREMENT PROCESS • New Rules - Competitive Dialogue • Approx. 18-month process
FINANCIAL INFORMATION • PFI Credit Award - £31.9 million • Total contract value - £141million • Annual cost - £2 million • Affordability gap - £450,000 pa • Income Generation - £200,000 pa
THANK YOU! ANY QUESTIONS?