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Published byDella Flowers Modified over 9 years ago
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STREET LIGHTING & TRAFFIC SIGNALS PRIVATE FINANCE INITIATIVE
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INFRASTRUCTURE 16,500 Street lighting columns 2,050 Traffic signal points 1,500 Illuminated signs 800 Illuminated bollards
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THE PROBLEM Asset condition Maintenance backlog Perceptions of crime Need for investment Shortage of funding
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THE NEED
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OPTIONS CONSIDERED TYPES OF PROCUREMENT: In-House provision Traditional Term Maintenance Joint Venture Private Finance Initiative
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PRIVATE FINANCE INITIATIVE WHAT IS IT?
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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
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PFI HOW DOES IT WORK?
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PFI 25-year contract 5-year Core Investment Period Ongoing maintenance Performance driven - Outputs Transfer of risk to most appropriate party
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PFI WHAT WILL BE DIFFERENT?
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PFI Large-scale upgrade of street lighting and traffic signals Column positioning Improved lighting levels De-cluttering Robust monitoring and maintenance regime Improved streetscape
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EXPECTATIONS Typical Residential Street – Prior to PFI Typical Residential Street – Post PFI
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EXPECTATIONS Devonshire Road Devonshire Road – Recent Scheme
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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
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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
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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
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THANK YOU! ANY QUESTIONS?
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