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

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.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • Angkor Beer, 30 Years of Prestige and Still Counting

    Let’s celebrate 30 years of prestige with Angkor Beer. In this 2022, Angkor Beer is 30 years old and has been staying with Cambodian hearts in all circumstances. Head of core beer portfolio, EmYuthousaid, “We have been with Cambodians for three decades now. We, ANGKOR Beer, pride