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

THE NEED

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

EXPECTATIONS Typical Residential Street – Prior to PFI Typical Residential Street – Post PFI

EXPECTATIONS Devonshire Road Devonshire Road – Recent Scheme

PROCESS TO DATE Total of £600 million credit – 15 Authorities bid DfT announcementNovember 2005 Expression of Interest submittedFebruary 2006 Business Case submittedJanuary 2007 Pre Qualification of BiddersApril 2007 Formal approval receivedSeptember 2007 Procurement commencesOctober 2007

PFI PROCUREMENT PROCESS New Rules - Competitive Dialogue Approx. 18-month process October 2007Outline Solutions April 2008Detailed Solutions October 2008Final Tenders December 2008Contract Award April 2009Contract commences

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?