The Public-Private Partnership (PPP) project for public street lighting in Ribeirão Preto achieved yet another success in a recent auction held at B3, São Paulo.
The winning bid was awarded to the Conecta Ribeirão Preto consortium, which offered an impressive discount of 43.7% on the Maximum Monthly Revenue for project execution and service provision.
The bidding process of PPP projects in Brazil is held through a reverse bid auction with a ceiling price (Maximum Allowed Revenue), where the successful bidder offers the highest discount to the ceiling.
The project was selected through the Support Fund for Structuring Concession Projects and PPPs (FEP), a collaborative effort involving the Special Secretariat for the Investment Partnerships Program of the Civil House of the Presidency of the Republic (SEPPI-CC-PR) and executed by Caixa Economica Federal (one of Brazilian Federal Government Banks).
To ensure a robust and well-structured tendering process, the project also received technical and financial support from the International Finance Corporation (IFC) and the Global Infrastructure Facility (GIF), both linked to the World Bank Group. The project modelling was also developed with advice from E&Y, Manesco, Arcitech, and Studio 3k.
Project Scope
The investment contract is valued at approximately R$ 103 million and spans 13 years. The initiative aims to fully refurbish and upgrade more than 96,000 lighting points throughout the city, improving safety and quality of life for the population.
The project’s scope includes the replacement of traditional light fixtures with energy-efficient LED technology, as well as the expansion of lighting to an additional 12,751 points, including avenues, streets, and squares in all regions of the city. The comprehensive upgrade also includes specific lighting for crosswalks, pedestrian pathways, and bike lanes.
Final Comments
Mayor Nogueira Duarte, Ribeirão Preto’s Mayor, highlighted the benefits this project brings to residents. The shift from heavy metal lamps to eco-friendly LED lamps contributes to public safety and fosters a more conducive environment for businesses, tourism, and road safety while promoting sustainability.
Additionally, the project will relieve the public sector of lighting maintenance tasks, becoming the responsibility of the concessionaire and enabling better long-term operation and maintenance management.
