Bucharest public lighting to be managed by Luxten for an extra 3 months, then taken over by new municipal company

Bucharest City Hall says that the contract with Luxten for public lighting has been extended for three months after it had expired at the end of 2017.

After the 3-month period, the public lighting service will be delegated to the Municipal Public Lighting Company which the City Hall created last year.

According to the authorities, the municipal company will also make new investments in the system, especially in areas currently lacking public lighting, and will integrate these investments into the city’s Smart City Strategy.

An Opportunity Study which is currently open to public debate on the City Hall’s website regarding the management of public lighting concludes that giving this task to the municipal company would reduce costs by 10 percent.

However, notes hotnews.ro, the document does not clearly show how much money the company needs in order to provide the necessary services.

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Over the last months, the General Council of Bucharest funded the company with around RON 10 million and a loan of around RON 9.7 million that needs to be paid back in 12 months.

In 2016, Luxten Lighting received payments of RON 133.8 million from the City Hall. By November 2017, the total sum paid to Luxten was RON 86 million. However, despite these relatively large sums, the service was not managed very well, as tens of streets in the city would be badly lit and Luxten would very rarely replace broken lights in due time.