LED Lights project not awarded to any firm: Chairman CDA

Islamabad, January 26, 2012: Capital Development Authority (CDA) is contemplating to explore the options to conserve the electricity and decrease the huge cost incurred on operating the street lights in the Federal Capital. Shifting of the existing conventional lights into LED Lights would save 52% of CDA energy requirements, which will reduce a load of 8.32 MW on national grid. CDA believes that the project is of the national importance and financially viable but CDA has not so far awarded any contract for purchase of LED Lights.

This was stated by the Chairman Engineer Farkhand Iqbal while addressing a press conference here at CDA Headquarters today.

He said that efficient energy utilization has acquired immense importance in the backdrop of sharp increases in oil prices, depleting reserves and serious concerns on environmental issues. In addition to this the current prevailing energy shortage in the country also requires steps to either increase the energy production or reduce the energy consumption.

He said that CDA is managing around 65000 conventional streetlights installed in Islamabad, adding a load of 16 MW on national grid and incurring an annual expense of over Rs. 1.2 Billion, which is growing every year. As per the historical figures electricity cost has increased by 29% over the last 3 years and trend is expected to be the same. National Energy Conservation Center (ENERCON), Ministry of Environment approached Capital Development Authority (CDA) to replace the conventional public lighting system with LED lighting in order to save energy consumption on immediate basis as CDA is one of the major consumer  of public lighting.

Chairman CDA that due to this very importance of the LED and need for the energy conservation; CDA has designed a project to replace the conventional lights with LED lights. The cost is to be funded though ‘Debt: Equity Ratio’ of ’75:25’. CDA plans to manage 25% of equity component from own resources, while 75% of debt component is envisaged to be funded under ADB approved ‘Multi Finance Facility-Energy Efficiency investment Program’ which requires the approval of Planning Commission. The planning commission has principally approved the project. Chairman said that CDA has neither awarded the project to any firm nor intends to implement the project immediately as financial position of the authority is not good.

He also clarified that the life of proposed LED lights is more than 20 years and the Project, if implemented, will save 52% of CDA’s energy requirement every year, which will reduce a load of 8.32 MW on national grid and will save about 42,263 MWh / annum. This electricity saving will result CDA’s electricity bill and can be made available to industrial units which will result in job creation. The electricity savings and savings from repairs and maintenance on existing lighting infrastructure, of first 10 years will be used to repay the foreign investment.