ESCO LED street-lighting PPP project in the city of Novi Sad

EXPERTISE : , Project Implementation
SECTOR : , Public


GFA Consulting Group

project description

The objectives of this assignment are to: (1) conduct a feasibility study to identify and define the scope (project boundaries, technical and financial parameters and data) of a bankable and commercially viable LED street-lighting project to be implemented by an ESCO in the City of Novi Sad, including the technical data needed for the PPP tender documentation; (2) prepare the necessary ESCO LED street-lighting PPP project contracts and related tender documentation; and (3) support the city in the tendering and procurement phase, including providing clarifications and amendments related to the contract documents, where necessary.


To achieve the assignment’s objectives, the Econoler team performed the following activities:

  • Define the scope and conduct the feasibility study of the Novi Sad LED street-lighting project to be implemented by an ESCO by:
    • analyzing the current street-lighting system and its maintenance, institutional setup, legal practices, standards, suggesting areas for improvements, and providing the guidelines for involving the private sectors under the new project;
    • studying the new and innovative green technologies and specifically their potential for achieving carbon-emission reductions and financial savings through the project;
    • preparing the technical specifications and the inventory for the equipment to be procured as part of the project’s implementation;
    • outlining the scope, process and budget needed to complete all the necessary planning and design work for the recommended project components, including the economic evaluation; and
    • preparing a financial analysis outline for the proposed project and presenting a financial projection showing the estimated cash flows from the perspective of the city.
  • Recommend the institution setup for supporting tendering and implementation
  • Prepare for the PPP project implementation by conducting a legal assessment, performing a value-for-money assessment of the PPP approach and preparing the PPP project proposal.
  • Prepare the tender documentation, including the baseline report, the PPP contract, the risk allocation matrix and the legal analysis.
  • Support the city in the tendering process and provide training to the city staff on how to manage the various aspects of an ESCO approach.

Upon completion of the project, the City of Novi Sad will have upgraded all its main street-lights with LED bulbs using an energy performance contract approach.

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