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Logo of Phnom Penh Post newspaper Phnom Penh Post - Capital taps private firm to manage its lighting

Authorities fasten surveillance cameras to traffic lights at an intersection of Phnom Penh’s Monivong Boulevard last year. Phnom Penh City Hall yesterday announced that PPDEC will have exclusive maintenance rights to the capitals traffic lights, street lights and security cameras for 20 years.
Authorities fasten surveillance cameras to traffic lights at an intersection of Phnom Penh’s Monivong Boulevard last year. Phnom Penh City Hall yesterday announced that PPDEC will have exclusive maintenance rights to the capitals traffic lights, street lights and security cameras for 20 years. Heng Chivoan

Capital taps private firm to manage its lighting

Phnom Penh Municipality has reached a deal with PPDEC, a previously little known company, to privatise the capital’s public lighting system, a city official said yesterday.

Mean Chanyada, spokesman for Phnom Penh City Hall, said the agreement grants PPDEC the exclusive maintenance rights to the city’s traffic lights, street lights, security cameras and lighting systems for billboard advertising over a period of 20 years.

Under the terms of the agreement, which were finalised Monday, PPDEC will be responsible for replacing the fluorescent bulbs currently used in 10,000 street lights across Phnom Penh with energy-saving LEDs.

The deal will improve the efficiency of the lighting system management, he said.

“Our workforce does not have the skill to complete the task, so we hired a private company to undertake the project,” Chanyada said. “We will oversee the process to make sure that the terms of the deal are fulfilled.”

Chanyada did not provide details on the terms or value of the contract. However, local media reports claim PPDEC was given the right to collect the advertising revenue from all of the city’s billboards.

This could make it a very lucrative deal, according to one advertising industry expert, who estimated that the 30,000 advertisement billboards in Phnom Penh generate at least $10 million a year in revenue.

“I think the revenue from billboard advertising is much higher than what the company will spend on maintaining the lighting system,” said the industry expert, who spoke on condition that his name was not used. “It will be a very good source of profit for the company.”

Nevertheless, the result of the privatisation should be greater efficiency and a better public service for the residents of the city, he added.

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Comments

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Don Rennie's picture

Dear Kimsay,

Any goovernment contract that exceeds 3-5 years is ridiculous.

Someone in the government is receiving a kickback from the company responsible for maintaining the city lighting system.

Maintenance costs should be about $5-6 million/year.

DR

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