Panel SA: Companies want to change rules to increase revenues from public lighting PPPs

Companies contracted in recent years to modernize public lighting in several cities through public-private partnerships are coming together to try to change the rules applied to the projects.

The objective is to take advantage of the infrastructure of lighting parks to offer more services and thus increase their revenues. The mobilization of companies involves actions in Congress, city halls and official banks that have helped municipalities to put PPPs to life.

The companies want to change the legislation that regulates the Contribution for the Cost of Public Lighting Service, created in 2002 to cover the expenses of city halls and charged to consumers’ electricity bills. Current rules prevent the money from being used to pay for other services.

According to the companies, changes in the tax rules would make it possible to use the money to install security cameras, smart traffic lights and antennas for wireless internet connection on public lighting poles, generating benefits for the population and more revenue for the projects.

Although many PPPs allow the search for additional revenue, legal restrictions and inaccuracies in contracts create legal uncertainty, says Miguel Noronha, director of BMPI, responsible for lighting in Belo Horizonte, and coordinator of a study group on the subject created by Abdib (Associação Ministry of Infrastructure and Basic Industries).

According to consultancy Radar PPP, 56 contracts were signed for maintenance and modernization of lighting in recent years and there are around 400 projects underway in the country, including initiatives announced by city halls and partnerships in more advanced stages of development.

with Ricardo Balthazar (interim), Andressa Motter e Ana Paula Branco