BNDES - Brazilian Development Bank




Supported by BNDES, Petrolina’s public lighting PPP auction is held

Nov 19, 2020

The Public-Private Partnership (PPP) project for public lighting in Petrolina (PE), structured with the support of the Brazilian Development Bank (BNDES), was auctioned this Thursday, the 19th, in a public session held at the city. The winner will be responsible for the modernization, expansion and maintenance of the city lighting infrastructure, benefiting 350,000 people. More than R$ 90 million are expected to be invested in the system in 20 years.

The company Sadenco Sul-Americana de Engenharia e Comércio Ltda., of the Engie group, proposed the amount of R$ 409,200.00 of the city public consideration (amount that Petrolina will pay for the project execution), with a 67.6 % discount on the maximum limit defined by public notice. The maximum bid was R$ 1.263 million. The winner and seven other bidders (interested investors) competed for the PPP, making offers below this amount. In this case, the winner was the lowest offer, that is, the biggest discount – a final value of less than half of the initial.

Now, the bidding enters the technical qualification stage of the bidder that presented the best commercial proposal. In addition to developing the public lighting infrastructure, the concessionaire will have to implement intelligent operation and remote monitoring systems for the lights of the most important city roads. Another relevant item will be the installation of specific lighting for monuments and tourist spots, improving citizens’ safety and quality of life.

BNDES and public lighting The concession for the provision of public lighting services in Petrolina is part of BNDES city support program for the PPPs development in this sector. The projects modeled by BNDES total more than 500 thousand public lighting points and will bring public service of better quality to more than five million people. Direct positive impacts are expected on the population’s perception of security and quality of life, enhancement of tourism, and greater dynamism in the cities’ economic activity. In addition, the LED technology modernization provides energy efficiency and environmental sustainability.

Currently, BNDES public lighting program has seven projects, five of which have already been auctioned: Teresina, Porto Alegre, Vila Velha, Macapá, and now Petrolina. The auctions of Curitiba and Caruaru projects are scheduled for the first half of 2021.

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