2. PFI Street Lighting & Traffic Signal Project Update

3. Why PFI? – Blackpool’s issues

4. 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

5. PFI Scope Street lighting columns Adopted back streets Illuminated signs and bollards Traffic signals

6. PFI Scope AssetReplace during first 5-years Comments Street lighting columns72%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 points84%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

7. PFI – Current position ProcessTimeframe £31.9M PFI Credits awardedSept ‘07 Procurement Process Bidders solutions Oct ‘07 to current Close Dialogue – Issue final tendersDec ‘08 Appoint Preferred BidderFeb / March ‘09 Contract startAug / Sept ‘09

8. 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

9. Financial Information PFI Credits£31.9 million Contract Value£141 million Affordability Gap£472,000 Economic Benefits£113.2 million

10. 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

11. 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

12. Pre-Post PFI Lighting Typical Residential Street – Prior to PFI Typical Residential Street – Post PFI

13. Devonshire Road – Recent Scheme Devonshire Road Lighting

14. Traffic Signals Insert photo

15. What next? Appointment of Preferred Bidder by Executive Stakeholder Consultation Future presentations to O & S

16. Any questions?