BaltCap to carry out largest street lighting PPP investment in Poland
EstVCA member BaltCap announced that its portfolio company IZIM and the municipality of Miedźno signed a public-private partnership (PPP) agreement to modernize and significantly expand lighting infrastructure in Miedźno. Nearly 1900 LED lamps will be deployed within the Miedźno municipality over the next two years. The project is worth nearly PLN 22.4 million, making it the largest local-government investment in street lighting in Poland conducted as a public-private partnership.
The agreement between BaltCap’s IZIM and the municipality of Miedźno encompasses the construction of new and exchange of all existing lamps. IZIM will be responsible for the entire project, including financing as well as the operation and maintenance of the lighting infrastructure for eight years.
The street lightning infrastructure will be modernized not only in Miedźno but also in other towns within the municipality. Modern energy-efficient lighting will be deployed in Borowa, Dębiniec, Izbiska, Kołaczkowice, Mokra, Ostrowy nad Oksza and Wapiennik, as well as along the main roads within the municipality.
“The project being done in collaboration with IZIM is certainly one of the most important investments for our municipality in the recent years. Over the next two years, the number of lighting points will practically triple. It is also of key importance to us that the lighting will cover the municipality’s entire road infrastructure, which will have a positive impact on safety as well as the quality of life of the residents. The second significant element is energy efficiency, which results from using LED lamps. Thanks to this, our municipality will not be incurring higher energy consumption costs than currently despite such a considerable expansion of the infrastructure. Therefore, this is a significant investment in terms of concern for the natural environment,” said Piotr Derejczyk, head of the Miedźno municipality.
“I would also like to note that carrying out such a large investment so quickly turned out to be possible only as a public-private partnership. If we were to do this in a traditional manner – financing it on our own and with loans – it would not be possible. This is certainly a benefit for us,” he added.
“BaltCap has extensive experience in implementing public investments in Poland – this is already the third PPP project launched in the past several months. We are actively participating in other similar tenders and hope that our presence on the Polish market will grow in the near future. We are eager to support local authorities in building modern, sustainable infrastructure and create a better future. We appreciate the opportunity to deliver such a large investment - this validates our accomplishments so far and assures BaltCap and IZIM are heading in the right direction,” added Šarūnas Stepukonis, partner at BaltCap Infrastructure Fund.
“The investment in the Miedźno municipality is an excellent example of how public-private partnerships can effectively serve to meet the needs of residents, accomplish public policy objectives and develop business. The scale of this project certainly makes an impression – this is without a doubt the largest investment of this type being implemented in Poland. I sincerely hope that Miedźno will serve as an example and will encourage other local government units and businesses to further develop PPPs. This is a platform that delivers mutual, tangible and lasting benefits,” said Rafał Cieślak, a lawyer in charge of the team of advisers in signing the contract.
IZIM is a specialist entity owned by BaltCap Infrastructure Fund that helps local governments and other public sector entities in preparing, financing and implementing complex investments related to public infrastructure, especially under public-private partnerships (PPP).
BaltCap is a leading private equity investor in the Baltics. The company has been operating in the region since 1995, its investors include the European Investment Bank, European Bank for Reconstruction and Development and leading Scandinavian pension funds. BaltCap Infrastructure Fund (BInF) has extensive experience in PPP projects in the Baltic region.
For more information, visit www.izim.pl and www.baltcap.com or contact:
Sarunas Stepukonis
Partner, BaltCap Infrastructure Fund
Phone +370 6866 6201
sarunas.stepukonis@baltcap.com
www.baltcap.com