Aug 17, 2020

 A public notice for the privatization of public lighting in Macapá (Amapá state) was launched on Monday (17), modeled after the technical support provided by the Brazilian Development Bank (BNDES) to the City Hall. With the new lighting system, the 500,000 inhabitants will benefit from a higher quality service. The bidding is scheduled for October 7.

According to the BNDES Superintendent for Structuring Partnerships, Cleverson Aroeira, the PPP allows for the private partner to carry out the modernization of the entire public lighting park in the municipality, including the implementation of remote monitoring technology for the lighting fixtures (remote management) in the main roads with immediate benefits for the population. "In addition to the potentially improving public safety in the municipality, these investments will also provide for the revitalization of the main public spaces and facilities in the city."

The concessionaire's investments in the project are estimated at over R$ 100 million over the concession period. In this public-private partnership (PPP) for public lighting, BNDES advised the City Hall of Macapá in the development of all stages of the project: technical studies, economic and financial modeling, and the preparation of the public notice and contract drafts.

The grant serves to delegate the services of modernization, efficiency, expansion, operation and maintenance of the municipal network infrastructure for a period of 20 years. The future concessionaire must also implement, within a maximum period of 24 months, a system that meets the efficiency and performance requirements set out in the PPP public notice throughout the city. It should also implement prominent lighting projects in specific locations such as squares, parks and monuments. 

The private partner will also make improvements, such as the implementation of a remote management system on the main roads, paving the way for services related to the concept of “smart cities” to be offered to residents. With the concession of the service, direct positive impacts are expected on the population's perception of security and quality of life, enhancement of tourism and more dynamism in local economic activity.

BNDES and the structuring of PPPs in public lighting

The Macapá project is part of BNDES’s support program portfolio for municipalities for the development of PPPs in the public lighting sector. This program directly contributes to one of the BNDES’ deliveries to society established in its Triennial Plan (2020-2022), which provides for the Bank’s support in structuring sector grants to 14 million Brazilians. In order to achieve the strategic objectives of its development agenda, BNDES started to operate with a factory of projects and services, structuring partnerships with the public sector, new investors, and qualified operators to develop private solutions to public problems. 

With the bidding of the Porto Alegre, Teresina and Vila Velha projects, there are currently six projects in progress. Together, they total more than 550,000public lighting points that will bring a better quality public service to more than six million people. One of the highlights of BNDES actions in the sector was the modeling title of the year of the PPP Awards & Conference Brazil 2019, with which the PPP of public lighting in Teresina was awarded.