Personal tools

India, Rajasthan Street Lighting

Developing a Public Private Partnership to improve public safety in Jaipur

India Rajasthan Public Street Lighting

Context

Located in Rajasthan in north-west India, the city of Jaipur is home to around 3.5m people. The Jaipur Municipal Corporation (JMC) maintains civic infrastructure in the city, including its large network of street lighting. Due to budget and staffing constraints, maintenance of street lighting has been limited, with no co-ordinated advances in technology. Jaipur’s street lighting is energy intensive and the JMC received a high volume of complaints concerning residents’ safety and instances of poor lighting impacting upon traffic movement. Aware that adopting new lighting technologies could cut costs and halve energy consumption, the JMC and State Government of Rajasthan were keen to explore financing options for a major upgrade of the system.

Project

With critical funding from DevCo, the JMC engaged the International Finance Corporation (IFC) to help structure and deliver a Public Private Partnership (PPP) transaction to transform Jaipur's street lighting. The work involved undertaking legal, financial, environmental, technical and regulatory due diligence to ensure that the project was sustainable and that the rights of all parties were fairly represented. Following a competitive tendering process, the JMC and State Government of Rajasthan signed a 10-year Energy Performance Contract (EPC) with Efficient Illumination Private Ltd, a consortium led by local energy services company, SMC Infrastructures Private Ltd. The consortium includes a major manufacturer of LED lighting, considered amongst the most energy efficient technology on the market. The company will retrofit, operate and maintain 70,000 streetlights in the city using a modern, computerised central control and monitoring system.

Impact

By installing and effectively maintaining energy efficient LED street lamps, the Rajasthan Street Lighting project is delivering annual fiscal savings of US$1m whilst cutting greenhouse gas emissions by 36,750 tonnes per annum. DevCo’s support to develop a PPP for Jaipur's street lighting provides 1.65m people with access to improved street lighting, improving safety and security.