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Auctions for the concession of public lighting services in Belém (PA) and Sapucaia do Sul (RS) held this Friday (11/6)

Home > PPI English > News > Auctions for the concession of public lighting services in Belém (PA) and Sapucaia do Sul (RS) held this Friday (11/6)

06 de novembro de 2020

Auctions for the concession of public lighting services in Belém (PA) and Sapucaia do Sul (RS) held this Friday (11/6)

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The auction session to select the companies/consortia responsible for public lighting services in the municipalities of Belém (PA) and Sapucaia do Sul (RS) was held this Friday, November 6th. The total planned investments (Capex + Opex) add up to almost BRL 310 million.

The session took place at the São Paulo Stock Exchange (B3) and was attended by the Special Secretary of the PPI, Martha Seillier, the National Secretary for Mobility and Regional and Urban Development at the Ministry of Regional Development, Tiago Pontes, the Vice President of federal bank Caixa, Tatiana Thomé, as well as representatives of both municipalities and of the Financial International Corporation (IFC).

“We are increasingly embracing states and municipalities, with training, technical and financial support so that they are able to conduct partnership projects in the most diverse areas. The public lighting projects supported by the Federal Government and auctioned this year will make it possible to modernize 393,000 lighting points, doubling their number under private management. These initiatives make it possible to reduce energy consumption by more than 50%, generating savings in public resources, in addition to increasing the feeling of security for citizens”, says Special Secretary Martha Seillier.

 

Check the result of each auction:

Belém: the public lighting PPP project in the capital of Pará involves the modernization of more than 90,000 lighting points and investments of BRL 458 million. The winner was consortium “Luz de Belém II”, represented by Mirae Asset, which offered the lowest maximum monthly consideration (BRL 1,134,315.83) - Discount of 65.51%.

Sapucaia do Sul: the public lighting PPP project involves the modernization of 13,000 lighting points and investments of BRL 62 million. The winner was consortium “Ilumina Sapucaia do Sul”, represented by Ativa, which offered the lowest maximum monthly consideration (BRL 213,026.00) - Discount of 51.07%.

The winner in each municipality must develop, modernize, expand, operate and maintain the municipal public lighting network for a contractual term of 13 years. It is part of the scope of the projects to use LED lamps and remote management devices in public lighting points, aiming to promote the reduction of energy consumption and improve the quality of services and the enjoyment of urban spaces by the population.

The two projects, selected in 2018 by public call, were prepared by the Special Secretariat of the Investment Partnerships Program (SEPPI), Caixa Econômica Federal and Ministry of Regional Development (MDR) and are part of a group of initiatives supported by the World Bank Group through the International Finance Corporation (IFC) and the Global Infrastructure Facility, bodies with expertise in preparing partnership projects.

The initiative is also part of the Federal Program to Combat Violent Crime, coordinated by the Ministry of Justice and Public Security, with the objective of inhibiting crimes and increasing the population's sense of security.

 

Street lighting

Federal Government support for subnational initiatives are provided for in Decree 9,036 / 2017, which included the public lighting sector as one of the public policies of national priority and allowed the Federal Government to promote projects through the Fund for Supporting the Preparation of Concession Projects and PPPs (FEP).

In public lighting, thus far 20 municipalities have been supported, including the three projects that were auctioned on August 14, 2020 (Aracaju / SE, Feira de Santana / BA and Franco da Rocha / SP) and the two projects auctioned this Friday (11/6). These 20 municipalities total approximately 600,000 public lighting points.

The projects supported by the Federal Government auctioned this year will almost double the number of lighting points under private management in Brazil. In 2019, according to the “Panorama of Private Participation in Public Lighting”, prepared by the Brazilian Association of Private Public Lighting Concessionaires (ABCIP), the country had 401,000 public lighting points under private management through PPPs . With the auctions held in 2020, 393,000 lighting points will be added to this amount, representing an increase of 98%.

New projects were selected in the first half of this year, with a view to establishing a “project factory” for partnerships for the sector. In total, 134 municipalities were selected, 88 of which through inter-municipal consortia.

Considering the current portfolio of 20 projects, it is expected that all auctions will take place between 2020 and 2021. Given the call for new municipalities/consortia selected to receive support from the FEP fund, a flow of new auctions in the sector is expected for the next two years.

 

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