Support to the WB and the Caixa Econômica Federal in evaluating and identifying cities in Brazil interested in developing PPPs to modernize their street-lighting

Following the publication of an in-depth market report on street-lighting in Brazil (Lighting Brazilian Cities report) and the development of a tool for conducting financial and economic analysis of such projects (CityLED Tool), the World Bank, through a technical assistance program supported by ESMAP – the Brazilian Energy Efficient Cities Program (BRAZEEC), launched a project called FinBRAZEEC with the Caixa Econômica Federal (CEF) to provide financing for energy-efficiency projects, such as street-lighting in cities of Brazil.   The World Bank and CEF have developed a preliminary list of about 40 cities that may be interested in developing PPPs to modernize street-lighting systems.   The World Bank selected Econoler to conduct pre-feasibility studies for an initial pipeline of cities that may be interested in developing PPPs. The goal of this work was to identify approximately 10 cities that are ready to complete a full feasibility study and the structuring of a PPP with WBG and CEF support.

Econoler has been hired to provide support in evaluating and identifying about 10 cities in Brazil interested in developing public-private partnerships (PPPs) to modernize their street-lighting systems. As part of this assignment, Econoler carried out the following tasks:

• Validated the selection of 10 to 15 cities in the preliminary list of 40 cities interested in developing PPPs, by conducting a desk review, phone interviews with cities and collecting information about the size, socio-economic characteristics, region, the number of lamps, and the mix of existing lighting technologies, the quality of the data available, the capacity of counterparts, political interest, etc.
• Conducted site visits in the selected 11 cities (Alagoinhas, Belém, Betim, Campinas, Campo Grande, Duque de Caxias, Juiz de Fora, Manaus, Novo Hamburgo, Palmas and Ponta Grossa) to collect additional information, such as existing modernization plans, and data regarding the safety and mobility statistics of the city (street crimes, crimes against women, traffic accidents, etc.)
• Conducted a pre-feasibility analysis, including a technical/legal/institutional/financial/economic analysis using the WB’s CityLED tool. For each city, several scenarios were analyzed:
• Replacement of lamps by LED lamps with and without the telemetering system (for control and dimming);
• in some cases, inclusion of expansion plans of the street-lighting network.
• Evaluated each city’s readiness to implement the EE street-lighting project using a PPP by assessing its legal and regulatory frameworks, financial situation and political interest in a PPP.
• Supported the 11 cities in preparing the legal, regulatory and administrative modifications required to implement a PPP for public street-lighting.
• Prepared a guidebook and a toolkit for future pre-feasibility studies to follow, including (1) steps and important data and variables to be gathered, (2) a checklist of choices and decisions for cities and (3) template documents for drafting legislation, decrees and administrative changes required to implement a PPP for public street-lighting.

  The project will help the 11 cities start completing a full feasibility study and structuring a PPP with WB and CEF support. These cities’ projects will also serve as examples and case studies for other cities in Brazil to follow.