KUGOMPO CITY- The East London Industrial Development Zone (ELIDZ) has taken a major step towards improving energy efficiency in public infrastructure with the launch of South Africa’s first public lighting Energy Performance Contract (EnPC).
The project was launched in KuGompo City on Wednesday, as part of the Energy Efficiency in Public Buildings and Infrastructure Programme (EEPBIP).
According to ELIDZ, the industrial zone has invited proposals for the supply, installation, commissioning, operation and maintenance of smart Light Emitting Diode (LED) street-lighting infrastructure within the zone.
The project will be implemented through an Energy Performance Contracting (EPC) model, under which repayment is linked to verified energy savings achieved over the contract period.
ELIDZ spokesperson Siphosethu Tikana said the model could help public institutions overcome one of the major obstacles to infrastructure upgrades a lack of upfront capital.
“Although many institutions are often delayed by funding despite their potential, ECP offers a different approach by enabling private-sector investment to fund upgrades, with repayment linked to verified energy savings achieved over the contract period,” Tikana said.
He said the approach could reduce the immediate financial burden of infrastructure upgrades while allowing future energy savings to contribute towards long-term improvements.
“This means the upgrade can be delivered in a way that reduces the burden of upfront capital costs while using future savings to help fund long-term infrastructure improvement,” Tikana added.
ELIDZ said the smart street-lighting project forms part of its broader commitment to sustainable development. It also supports national efforts to improve energy management, reduce emissions and expand the energy services market.
The industrial development zone said the project could provide a practical example for municipalities and other public institutions grappling with rising energy costs and ageing infrastructure.
It emphasised that innovation in public infrastructure was not only about adopting new technology, but also about finding smarter ways of financing, delivering and managing projects.
ELIDZ Chief Executive Officer Thembela Zweni said, the organisation was committed to finding practical solutions that improve infrastructure performance while supporting sustainability and long-term competitiveness.
“As a leading Eco-Industrial Park, ELIDZ is committed to identifying and implementing practical solutions that improve infrastructure performance, strengthen sustainability and support long-term competitiveness,” Zweni said.
He said the street-lighting project went beyond replacing existing lights.
“This project is about more than upgrading streetlights. It is about showing how innovative financing and delivery models can help unlock infrastructure investment while delivering measurable operational and environmental benefits,” Zweni said.
Technology providers and financiers interested in participating in the project have been encouraged to consult the tender documentation available on the ELIDZ website.
The closing date for submissions is September 18 2026 at 12 noon.
Amahle July
28 August 2026
Courtesy of IMAGE: ELIDZ
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