Introduction
High quality LED Street lighting will perform
as a reliable asset for many years if procured correctly. The market is highly
competitive and there are large differences in performance of lighting between
different manufacturers, with many claims. The addition of smart controls adds
a layer of complexity that is littered with acronyms and terminology you have
never heard before.
As a council officer, you have been tasked to
upgrade street lighting in your municipality. This is a once in career
opportunity to get it right………or get it wrong.
- How do you do it?
- Where to start?
- What are the risks?
- What are business models on offer?
- What do we want to achieve?
- Are we responsible for street lighting?
- What PentaSoft Infotech do? (www.pentasoftinfotech.com)
- How can you get work from PentaSoft Infotech?
In most jurisdictions across India, the local
government authority is responsible for setting lighting standards on local
roads under its control. A detailed legal review of this responsibility should
be undertaken by a specialized lawyer who understands the street lighting asset
and its relationship with PI utilities. In States such as Orissa & Goa,
through the respective Local Government Act and Road Management Act, street
lighting is clearly the responsibility of the local council even though it may
choose to vest ownership and maintenance responsibilities of the street
lighting asset to PI utilities.
Your project team
Street lighting as an asset usually falls to
the Engineering or Infrastructure services team or because of the direction of
climate change, the Environmental team, however because these projects are
usually large in contract value and complex, your project team should be
representatives of:
- Procurement Governance
- Finance
- Engineering
- Environmental
- Planning
- IT
Ensuring a multi-discipline project team
ensures that the goals of the infrastructure project are equally considered.
Engaging a Consultant or
external adviser
With the complexity of technology, in a
specialized market, it is important for your potential tenderers to ensure any
advisors you engage as a council are working impartially for the benefit of you
the customer and the outcomes of the project. Due to the large potential
contract values involved, you should seek the input of:
Probity and Legal Advisors
Strategic Procurement Advisors with a working
knowledge of the electrical and lighting industry
Any advisor you engage should sign a statutory
declaration indicating that their businesses are not in any way conflicted with
any potential tenderers, suppliers or incumbent PI utilities that may be
involved at any stage of the project.
Many of the companies who may tender these
projects are large multi-national organizations with deep connections into all
levels of government.
Probity and ethics and commercial
relationships are scrutinized and analyzed and any perceptions of conflict of
interest erodes quickly erodes good will which are the necessary components in
negotiating contracts successfully in under contract law in India.
Risk Management
A detailed risk management model should be
mapped out with any major procurement and infrastructure project. These smart
lighting projects often encompass the opportunity to redesign an asset with the
future in mind and any risk management process should include (not exhaustive)
list of questions such as:
- Demographics of the region and ageing forecasts and will their demand for more public lighting?
- Can we accurately forecast the costs of doing nothing?
- How old are the current assets and what are the avenues for asset renewal?
- What is our projected Business As Usual (Approach) and cost?
- What are the electrical safety risks?
- What are all the paths to comply with wiring rules?
- What could be the future intangible asset value of the streetlight with smart technologies?
- What are the risks for using consultants that may be conflicted?
- Are we promoting and encouraging greater competition?
- What are all the environmental risks?
Performance Management Contract
Energy Performance Contracting is a way of
implementing energy efficiency projects and equipment / plant / maintenance
upgrades in all types of facilities and buildings including streetlights. It
provides a transparent way to manage risks, while guaranteeing outcomes and
results.
The services that an ESCO
(contractor undertaking a Performance Management Contract) will perform
include:
Performing an energy audit, lighting design
known as a Detailed Facility Study (DFS) or Lighting Master plan
Establishing baseline energy use for specific
equipment, systems, or the facility as a whole;
Designing the project in consultation with the
Customer;
Undertaking turnkey supply, installation and
commissioning of equipment;
Training or briefing Customer personnel;
Operating and maintaining the equipment for
the life of the contract;
Conducting measurement and verification
(M&V) to determine the actual savings; and
Providing savings and equipment performance
guarantees.
Other items such as technical, civil and legal
liability risk can also be priced into these types of contracts and should be
detailed before the tender.
The nature of the contract is intended to be
long term so a good contract and legal advice should be well established before
the contract and the outcomes clearly understood.
Background
Andhra Pradesh became the first state to get
assistance from EESL to replace conventional street lighting with LED lighting
after cyclone Hudhud cause extensive damage in Visakhapatnam. Since then, ESSL
has installed an approximate 5,90,000 LED street lights in the state. These
lights have helped the state to reduce over 65,000 tonnes of CO2 every year.
Across the country, more than 23 lakh conventional street lights have been
replaced by LED street lights in 21 States. Prime Minister has launched '100
cities National Programme' on 5th January 2017 to replace conventional domestic
lights with energy efficient LED lights, Similarly, Under the Street Light
National Programme (SLNP), the government has set a target of replacing 1.34 Crore
conventional street lights with LED lights across the country. LED bulbs have a
very long life, almost 50 times more than ordinary bulbs, and 8 to 10 times
that of CFLs, and therefore provide both energy and cost savings in the medium
term. The benefits of LED lights are: (i) Electricity savings (ii) Reduction of
load (iii) Reduction of consumer bills (iv) Greenhouse gas emission reductions. Andhra Pradesh, Goa, Rajasthan and Orissa
became the first state to get assistance from EESL to replace conventional
street lighting with LED lighting after cyclone Hudhud cause extensive damage
in Visakhapatnam. Since then, ESSL has installed an approximate 5,90,000 LED
street lights in the state. These lights have helped the state to reduce over
65,000 tonnes of CO2 every year. Across the country, more than 23 lakh
conventional street lights have been replaced by LED street lights in 21
States. Prime Minister has launched '100 cities National Programme' on 5th
January 2015 to replace conventional domestic lights with energy efficient LED
lights, Similarly, Under the Street Light National Programme (SLNP), the
government has set a target of replacing 1.34 Crore conventional street lights
with LED lights across the country. LED bulbs have a very long life, almost 50
times more than ordinary bulbs, and 8 to 10 times that of CFLs, and therefore
provide both energy and cost savings in the medium term. The benefits of LED
lights are: (i) Electricity savings (ii) Reduction of load (iii) Reduction of
consumer bills (iv) Greenhouse
SCOPE OF WORK TO OPERATE THIS
PROJECT
5.1 The Contractor will provide the services
of Electric Street Lighting by installing complete set of 7610 LED Street Lights and dismantling of Old Street light fixtures (“the Work”) in the
jurisdiction/s.
5.2 The Company shall supply the material to
the Contractor for the Work in these locations & if the location is nearby
the working site then Contractor have to bring of their own.
5.3 The Contractor is required to complete
installation of 1000 street lighting per day and invoice shall be raised on
monthly basis.
5.4 The Contractor shall possess valid
electrical license for executing the said works.
5.5 The Contractor is responsible for handing
over the old fixtures to the Company warehouse/Godown.
5.6 All the cable connections shall be applied
with anti-corrosion gel and insulated with self-bonding insulation tape issued
by the Contractor if required.
5.7 The Contractor shall employ suitable
skilled persons to carry out the said Works.
5.8 The Contractor shall regularly supervise
and monitor the progress of work and keep informed to the Company about the
progress of work on daily basis.
5.9 The Contractor shall ensure that the work
is carried out in accordance with supply of street lighting material by the
Company and within the total of the contract amount without any cost
escalation.
5.10 During the period of maintenance, the
Contractor shall take appropriate measures for ensuring safety of working
personnel, as per all applicable laws in general and with special focus in
working at heights, working on/in the vicinity of power supply lines.
5.11 The Contractor shall be responsible for
all statutory compliance as may be required with regard to the activities to be
performed to execute the scope of work under the contract including
requirements under Contract Labour Acts, Safety of the workmen deployed etc.
including all expenses incurred for the same.
5.12 The Contractor shall be solely
responsible / maintain necessary Insurance against loss of materials, cash, or
workman disability and death compensation claims of the persons deployed at the
Works.
5.13 The Contractor don’t pay refundable
Security deposit then Contractor shall provide to their workmen like Safari
Semi Safety Helmet, Electrician Jacket, Hand Gloves, ladder to climb a
Electric pole for 25-30 feet, All sized spanner, Tester, Wire cutter, Cutting
Player, Plus & Star Screw driver, Chisel, Hammer etc..
5.14 The Contractor have to make clamps and
bending rod through fabricator for which we will pay Rs. xxxx/- per light
fittings clamps if required as per the specification required and bill of these
amount will be claimed every after 3000 pc.’s.
5.15 The Contractor has to take own room for
workmen on the proposed site on rent the work in process and will be
reimbursement every after 30 days.
5.16 If the Contractor leaves the work in
between then he/she has no right to claim for payment of the work done and he
can leave the work after completion of 5000 light fitting only.
5.17 The Contractor must take the material on
per day basis only on writing & should submit remaining and replaced
material in writing.
5.18 The Contractor must send us images
through WhatsApp of each and every pole at the time of working.
5.19 The Contractor must mail us day to day
report latest by 08:00 pm to our mail id.
5.20 The Contractor must report the actual
number of lights on daily basis.
5.21 The Contractor must have the liabilities
of Lodging and boarding of their workmen.
93/94, 2nd Floor, Ram-Maruti
Building, Beside Ichapurti
Ganesh Mandir, Near Katraj,
Ambegaon Budruk, Katraj,
Pune 411046
Mobile: 8510026685, 7291018038
