• Walloon LED street lighting PPP advised by BDO
Case study:

Walloon LED street lighting PPP advised by BDO

29 March 2019

BDO Advisory was co-financial adviser to the LuWa consortium that has reached financial close on Plan Lumiere 4.0, an availability PPP project involving the modernisation and maintenance of the street lighting network across the Walloon region’s main roads.

The consortium consists of DIF Infrastructure V, Citelum, CFE and Luminus. The authority partner is the Société de Financement Complémentaire des Infrastructures (SOFICO), the public company established to finance the maintenance and upgrade of motorways and other main roads in the Walloon region.

The 20 year DBFM contract covers 2,700 km of roads and interchanges. The project includes the replacement of approximately 100,000 street lights by modern LEDs with dimming capability, as well as the installation of a remote monitoring and management system.

The modernisation program will reduce the energy consumption of the network by 76%, equivalent to a reduction in CO2 emissions of 166,000 tons over the life of the project, as well reduce the light pollution generated by the network. Furthermore, the project will enhance regional employment opportunities: 400 new jobs will be created and 100,000 professional training hours will be organized together with the regional employment agency.

Total debt funding for the project amounts to €230 million secured from BBVA, Belfius, BNP Paribas, KBC, SMBC and Société Générale.