£65.5m Surrey lighting deal reaches end-game

Two contractors are left in the battle for Surrey County Council's £65.5m street-lighting private finance initiative (PFI) deal.

Balfour Beatty Power Networks will square up to a bid from the Skanska-Laing consortium, but the light has gone out for a pitch by the third bidder Vinci Investments.

The two remaining bidders will now proceed to best and final offer stage. A preferred bidder is expected to be chosen in October this year with the final award scheduled for January 2007.

The massive scheme involves replacing 74,000 of the county's streetlights. The replacement phase is expected to take five years to complete and will run from 2007 to 2012. The full maintenance contract will extend for 25 years.

Helyn Clack, Surrey County Council's executive member for transport, said: "The new streetlights will be brighter and will illuminate road surfaces better, while reducing light pollution significantly.

"We have made energy management a key aspect of the PFI and will be using the latest technology to ensure that we light roads efficiently and that we do not waste energy. Also, to demonstrate our commitment to sustainability in highways management, we have recently let a three-year green energy contract."

Seventeen companies originally expressed an interest in the project, with eight submitting proposals.

The Skanska-Laing joint venture and Vinci are also in the running for the only other PFI street-lighting deal to reach the shortlist stage at the moment.

They face bids from Amey and the Tay Valley Lighting consortium of Scottish & Southern Energy, Southern Electric Contracting and RBS for Norfolk County Council's £42m scheme. A preferred bidder is due by the end of the year.

[Contract Journal, 26 July 2006, p. 9]