UK Green Investment Bank plc (GIB) has agreed a £6.8m Green Loan with the Barking and Dagenham London Borough Council that could save the council up to £21m.
Barking and Dagenham London Borough Council agrees £6.8m Green Loan with GIB
The loan will finance the installation of 14,790 low-energy LED streetlights
Replacing traditional streetlights with LED alternatives could save the council up to £21m
The project could help avoid greenhouse gas emissions totalling 1,500 tonnes per annum
The loan will be used to finance the replacement of around 14,790 traditional streetlights with new energy-saving LED alternatives. The refurbishment of around 3,300 streetlight columns and the installation of a new central management system are also covered by the agreement.
The council expects the project to help reduce its annual streetlighting electricity consumption by half (by around 3.5 GWh), which equates to a saving of around £400,000 per annum at current energy prices. The project is also expected to help avoid greenhouse gas emissions totalling more than 1,500 tonnes CO2e for each year of its lifetime.
Installation work, which will be staggered over a two-year period, is due to commence early next year. VolkerHighways has been commissioned to carry out the work following a competitive tendering process.
The council is the first London borough and the fifth local authority in the UK to secure a Green Loan from GIB. Similar funding arrangements are already in place with Glasgow City Council, Southend-on-Sea Borough Council, Stirling Council and Kent County Council.
Edward Northam, Head of Investment Banking, GIB, said:
Replacing traditional streetlights with LED lamps and installing central management systems can make public sector lighting stock more efficient, cost-effective, environmentally friendly and easier to manage.
Councillor Darren Rodwell, Council Leader, Barking and Dagenham London Council, said:
This is a great deal for council taxpayers and residents. It means we replace expensive old streetlights with low-carbon, energy-saving ones. It’s another sign of the council delivering its ambition to provide value for money for residents and make a greener, better Barking and Dagenham.
Tel: +44 20 3037 4014
About the project
Total GIB share of investment: £6.8m Green Loan
Expected date of completion: 2019
Contractor: VolkerHighways Ltd
Notes to editors
About UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With initial funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.
GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority.
About Barking and Dagenham London Borough Council