eeef replicates the forfaiting mechanism for the municipality of Vila do Conde in Portugal to upgrade the public street lighting infrastructure

Vila do Conde, Portugal

On December 30th 2020, eeef signed a forfaiting facility of €5.1 million to finance renovation of the street lighting infrastructure in the municipality of Vila do Conde in Portugal. The signing of this agreement illustrates successful replication of eeef’s forfaiting facility to other project in Portugal, the first one being CIMAC, an inter-municipal community constituted in the Central Alentejo region, comprising of 14 municipalities: Alandroal, Arraiolos, Borba, Estremoz, Évora, Montemor-o-Novo, Mora, Mourão, Portela, Redondo, Reguengos de Monsaraz, Vendas Novas, Viana do Alentejo and Vila Viçosa.

Vila do Conde published a call for tender to upgrade and manage 18,972 public street luminaries. The project was awarded to a consortium jointly owned by I-Sete (60%) and Amener (40%). The project envisages replacement of existing sodium vapour lamps by energy efficient LED luminaries across Vila do Conde within 4 month construction period.

This upgrade is expected to realize 66.4% in primary energy and CO2 savings annually compared to baseline, representing 11,678 MWh and 4215 tCO2e, respectively. In addition, the project will also generate ca. € 3.2 million of monetary benefits for the municipality over a 12-year period of concession.

Vila do Conde is a municipality in the Norte Region and is located on the north-west coast of Portugal. It falls under the 9 municipalities within the Metropolitan Area of Porto. It has a population of about 79,533 in an area of 149.03 km². The municipality represents 21 parishes of which the urbanized area are situated in 3 parishes: Vila do Conde, Azurara and Árvore, which together represents 36,137 inhabitants.

I-Sete was founded in 2005 and has experience in Portuguese ESCO market for the street lighting installations and has over 170k street lighting points under management. On the other hand, Amener was founded in 2016 and is active in areas of energy efficiency, management of forests, green spaces, residue and urban waste management in Portugal & Spain.

The European Energy Efficiency Fund (eeef) S.A., SICAV-SIF is a “societé d’investissement à capital veriable” governed by Luxembourg law and was initiated by the European Commission in cooperation with the European Investment Bank. The capitalization is provided by European Commission, European Investment Bank, Cassa Depositi e Prestiti, Deutsche Bundesstiftung Umwelt, as well as the Investment Manager, Deutsche Bank.

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