Municipality of Kanjiža – Financial Savings Through a Public-private Partnership Model

In the presence of the Ambassador of Hungary in Belgrade, H. E. József Magyar, a contract was concluded for the reconstruction of public lighting using LED technology in the Municipality of Kanjiža

Photo: Aleksandar Jančević

The contract for 15 years was signed by the president of the Municipality of Kanjiža, Fejstamer Robert, and Obrad Tadić, director of the company Smart Energy Investment Kft. By applying the public-private partnership model, future electricity costs will be reduced, due to the use of innovative LED technology. According to the forecast calculation, the direct financial savings will be EUR 269,248, i.e. EUR 17,949 per year after payment of compensation to the Private partner.

Photo: Aleksandar Jančević

In the period of 15 years, there will be no increase in the current costs, and it is extremely important that the Municipality did not take a loan for the replacement of the existing lamps with LED public lighting. The total electricity savings for the duration of the project will be around 23,165,000 kWh.

Every project that represents a step towards bringing Serbia closer to the European Union is welcome. Kanjiža is a small municipality that recognized the possibility, but also the need, to save through a public-private partnership project and get the most modern lighting system and long-term benefits that will affect its citizens,” said H.E. Mr. József Magyar, Ambassador of Hungary to Serbia.

H. E. József Magyar, Obrad Tadić, Robert Fejstamer i Nebojša Rakić, Photo: Aleksandar Jančević

This is a significant move for the Municipality of Kanjiža, because through the model of public-private partnership, we will provide citizens with better lighting and safety on the streets, and in the budget, we will have more funds for other needs,” said Fejstamer Robert, president of the Municipality of Kanjiža.

The planned number of implemented Schreder LED lamps is 4,956 pieces, while their lifespan is 25 years. The private partner Smart Energy Investment Kft will fully independently finance the realization of this project.

As confirmation of the quality of our projects, in May of this year, UNECE selected our project in Zaječar, which is very similar to this one, in the top 10 PPP and infrastructure projects in the world. In addition, UNECE gave special praise to this project due to its compliance with the goals of sustainable development and the circular economy. We are proud of it and there is no reason to doubt that this project in Kanjiža will be equally good and of high quality to everyone’s satisfaction because it is the same replicable model of public lighting reconstruction projects. On this project in Kanjiža, we guarantee energy savings of about 1,544,000 kWh per year or 77%, which significantly affects the reduction of energy and environmental challenges“, said Obrad Tadić, director of Smart Energy Investment Kft.

It is expected that the implementation of the project for the reconstruction of public awareness in the Municipality of Kanjiža will be completed by the end of December this year.

H. E. József Magyar, Obrad Tadić, Robert Fejstamer i Nebojša, Photo: Aleksandar Jančević

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