DC Smart Street Lighting Project

KPMG & Ashurst

The 15-year performance-based contract between the District of Columbia and Plenary Infrastructure DC will convert approximately 75,000 existing lights to LED technology; install remote monitoring and control systems for the streetlight network; install 239 wireless access points as part of the smart city approach; and maintain and improve the streetlight assets over the course of the deal. The project is a pathfinder for both the district (its first P3 contract) and the country (first street lighting P3). The authority took an innovative approach to procurement, with bidders required to bid their forecast energy consumption for the converted street light network for the life of the concession. If actual energy consumption of the network exceeds the forecast energy consumption at bid, the overconsumption of energy is deducted from the availability payments. A key risk transfer for the project is through the performance requirements stipulated in the project agreement and the accompanying payment mechanism which includes deductions for poor performance.