The Hindu          18.12.2017   

BBMP to replace 4.85 lakh street lights without spending a paisa

The investment will have to be made by the private company that bags the contract

If all goes according to plan, by 2019 all streets in Bengaluru will
be brightly lit up with LED lights, which will be replacing the
power-consuming sodium vapour lamps. And guess what, while reducing
power consumption and thereby the power bill by more than half of its
present level, the Bruhat Bengaluru Mahanagara Palike (BBMP) would be
investing nothing on the project.

The private company that will
bag the contract will have to invest and replace around 4.85 lakh sodium
vapour street lights, but will recoup their investment over the next 10
years, taking a majority share (75%) of the amount of power dues that
is saved. BBMP will benefit from a reduced power bill (the remaining
25%).

Every month, the BBMP pays Rs. 12 crore for street lights. What will be the power bill with LED lights? Around Rs. 6 crore.

“The
sharing will go on for 10 years, during which time the company will
also maintain the lights,” said BBMP Commissioner N. Manjunath Prasad,
adding that BBMP’s spending on the power bill will effectively reduce to
Rs. 10.5 crore. The civic body will also save Rs. 30 crore per annum on
maintenance.

International Financial Corporation (IFC), a sister
concern of World Bank, has been roped in as a consultant for what is
being termed the ‘biggest street light project’ in the country. IFC has
already set the ball rolling and has begun a survey of the entire city
and its lighting needs. While BBMP has around 4.85 lakh street lights,
the survey will also identify areas which need street lights. Following
the survey, it will prepare a bid document and tenders will be floated.

Multiple
companies are expected to bid for the project now estimated to cost Rs.
560 crore, with a single LED bulb costing around Rs. 10,000. The IFC
will assist the BBMP in the process of selecting the best bid. The basic
selection criteria would be the amount of energy the company can
guarantee saving. The selected company, and not the BBMP, will be paying
the IFC for its service.

“The project is based on the energy
saving model, which is being undertaken on a smaller scale in
Bhubaneswar in Odisha and Jaipur in Rajasthan. Right now, the city has
problems regarding sufficient lighting. While some streets have lights,
they are either not functioning or are not bright enough. Some areas
don’t have any illumination. The project will cover the entire city and
the lights will be controlled by the central control room of the BBMP,”
said Mr. Prasad.