A Public Private Partnership (PPP) tender is to be launched in 2024 for a major modernisation of the street lighting system in Riga, renewing 80% of the lighting, increasing energy efficiency and reducing CO2 emissions. This issue will be discussed at the Riga City Council meeting on Wednesday, April 26.
The project will replace 40,000 sodium luminaires with LED luminaires, replace 20,000 old wooden, reinforced concrete and metal lighting poles with new galvanised metal poles, and improve the lighting control system. The lighting upgrades will also increase technical capabilities such as dimming, monitoring of luminaires, which will allow faster detection and repair of faults.
Chairman of Riga City Council Mārtiņš Staķis: "Riga can become a leader and a pioneer in the implementation of public-private partnership projects. Well-thought-out, successfully implemented PPP projects will become one of the keys to future success in attracting funding for ambitious projects in Riga. The first project of its kind is therefore particularly important as it will serve as a model for similar investments in the future. Working with the private sector will allow us to replace lighting faster, cheaper and with better quality. We want to see both local and international companies bidding for this and other PPP tenders in the future. To work sustainably and in line with current trends, the city needs state-of-the-art and energy-efficient street lighting. This will be a significant investment in the future - by reducing energy consumption, we will also reduce the municipality's costs and CO2 emissions!"
Mārtiņš Brencis, Deputy Director for Development of the European Union Funds System at the Central Financial and Contracts Agency (CFCA): "From the point of view of the CFCA as a PPP Competence Centre, we can see that Riga has great potential for PPP projects: its large population, large urban area and financial capacity. We very much hope that already in autumn this year Riga Municipality will submit to the CFCA the financial economic calculations of the planned lighting project to make Riga brighter and safer. We will provide advice and support to help the municipality prepare for the project in a timely and expeditious manner."
Most (about 83%) of the total number of luminaires in Riga are sodium luminaires of different wattages; replacing these sodium luminaires with LED luminaires will reduce electricity consumption by 65% or more, which will have a very significant impact on the municipality's budget. The Sustainable Energy and Climate Plan estimates that replacing all old luminaires in the city will reduce energy consumption by 12,617 MWh/year, while achieving emissions savings of 1,409 tCO2 annually.
The decision on the Financial and Economic Assessment (FEA) has now been taken. It is a statutory document that must be produced to determine the most economically viable project scenario and the appropriateness of applying the PPP model. This year will also see the continuation of the energy audit, which already started in 2022, with 90% of the audit costs covered by the grant programme "Energogrants" of the financial institution "Altum". The energy audit will provide a scenario for upgrading and improving the energy efficiency of the street lighting system, as well as calculations of the necessary investments. Preparations for the PPP procedure will be underway in 2024, with a view to launching the procurement for the PPP project at the end of 2024.
The preliminary cost of the project could be €60 million.
The project is in line with the Riga Development Plan's urban development priorities and the activities defined in the Sustainable Energy and Climate Plan 2022-2030.
Information was prepared by Solvita Brence-Kauste, External Communication Division Project Coordinator at Riga City Council, e-mail address: solvita.brence@riga.lv
