LED Street Lights Project in India

LED Street Lights Project in India Project Plan for Installation

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.

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