Brazilian municipality passes bill governing street lighting concession

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The government of Porto Alegre has passed a legislative bill authorising the Executive to contract a private partner for a street lighting project in the city, located in Rio Grande do Sul, southern Brazil. 

The bill establishes that the services to be executed by the private partner will comprise modernization, expansion, operation and maintenance of the city's street lighting networks.

The selected concessionaire will be allowed to explore complementary, ancillary or alternative projects, as long as such activities do not affect the regularity and adequacy of the contracted services.

The Executive is also authorized to funds allocated to the budget for the public lighting service to pay the amounts owed to the concessionaire. This may be regulated by a contractual mechanism and may count on the contracting of a depositary financial institution and operator of the related resources.

Any funds remaining after the authority has met its obligations to the concessionaire will be allocated to the Municipal Fund for Public Lighting. 

The bill also sketches out the optional use of an independent entity to verify the performance of the concessionaire in the execution of the services, which would be financed by municipal funds. 

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