Auditing of the public lighting contract for the city of Phnom Penh on behalf of the Agence Française de Développement
The Agence Française de Développement (AFD)
Contexte et enjeux
The public lighting system of the city of Phnom Penh is quite under-developed: only 180 of the 400km of the city's road network is lit and there are only 6,708 light sources, with a breakdown rate estimated at around 21%.
Faced with this situation, the decision was taken to launch a major project to improve the city's public lighting system, which should result in:
• The renovation of all the existing light sources;
• The extension of public lighting to new streets in the city;
• The showcasing of some twenty buildings in the city through an illumination system;
• The introduction of a remote management system;
• The introduction of rigorous management of the upkeep and maintenance of the system.
Prestations réaliséees et résultats
The Agence Française de développement appointed Espelia to conduct the audit for a new public lighting contract for the city. More specifically, Espelia's consultants provided the following services:
• The analysis of the stakeholders and the organisation of public transport in the city;
• A benchmark of the best international contractual and financial practices for renovating the public lighting of urban centres;
• The analysis of the appropriateness of the capital expenditures (CAPEX), operating and maintenance costs and the energy costs (OPEX) proposed by the future contract-holder;
• The analysis of the business plan proposed by the future contract-holder, in particular in order to assess the internal profitability level of the concession (project and investor) and the robustness of the project in the face of unforeseen circumstances;
• The analysis of the impact of the loan accorded by AFD for the project.
The contract was analysed and several recommendations were presented to the Agence Française de Développement for the optimisation of investment costs, a better spreading of risk between the local authority and the chosen operator and a contract centred on performance objectives.
Espelia's services were retained to support the city of Phnom Penh in managing the public lighting contract.