PFI Street Lighting & Traffic Signal Project Update

Why PFI? – Blackpool’s issues

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

PFI Scope

• Street lighting columns

• Adopted back streets

• Illuminated signs and bollards

• Traffic signals

PFI ScopeAsset Replace

during first 5-years

Comments

Street lighting columns 72% An additional estimated 1,865 columns will be installed to improve the current lighting standards and to light many currently unlit adopted back streets

Illuminated signs & bollards

100% A number of bollards will be replaced with reflective material

Traffic signal points 84% Move to a robust planned maintenance regime for all sites

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

PFI – Current position

Process Timeframe

£31.9M PFI Credits awarded Sept ‘07

Procurement Process• Bidders solutions

Oct ‘07 to current

Close Dialogue – Issue final tenders Dec ‘08

Appoint Preferred Bidder Feb / March ‘09

Contract start Aug / Sept ‘09

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

Financial Information

PFI Credits £31.9 million

Contract Value £141 million

Affordability Gap £472,000

Economic Benefits £113.2 million

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

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

Pre-Post PFI LightingTypical Residential Street – Prior to PFI

Typical Residential Street – Post PFI

Devonshire Road – Recent Scheme

Devonshire Road Lighting

Traffic Signals

Insert photo

What next?

• Appointment of Preferred Bidder by Executive• Stakeholder Consultation• Future presentations to O & S

Any questions?