Vilnius seeks investor to upgrade street lighting network

"Vilnius' existing street lighting network system will have to be modernized in the years to come in order to deal with emerging problems, such as the worn-out lighting network (89.9 percent of the equipment is worn out), rising operating costs, insufficient energy efficiency, increased crime and traffic accident risks due to the insufficient quality of public services, and the deteriorating environmental situation," according to the PPP project, which is planned to be submitted to the city council for approval next Wednesday.

Rasa Cibulskienė, acting deputy director of the Economics and Investment Department at the Vilnius municipality, told BNS that up to 87 million litas (EUR 25.2 m) in initial investments - to replace street lights and install a central management system - would be required. At a later stage, the city would pay the operator up to 14 million litas annually for the maintenance of the system and services.

The project calls for 50 percent of the estimated investment cost, 47.2 million litas, to be financed under the Climate Change Special Program, with the rest to be contributed by a private entity.

Cibulskienė said that Philips, GE, Swarco and other global companies have shown interest in taking part in the bidding process.

The city expects to launch a tender in July and to sign an agreement with an investor by the end of this year, she says.