Blackpool, a town located on England's northwest coast, has announced it has refinanced its street lighting and traffic signals private finance initiative (PFI) project with Community Lighting Partnership (CLP).

Through the refinancing, Blackpool council expects to save around £3 million (US$4.3 million) over 19 years, which equates to £157,000 a year.

The council awarded to CLP, a 50-50 consortium of Equitix (through its Equitix Fund I) and Pell Frischmann, the original contract in July 2009. The original contract cost was £153 million (US$220 million) over 25 years and the Department for Transport provided a £33.9 million Private Finance Initiative (PFI) grant for the project.

SMBC and Nord LB Banks have provided funds in the refinancing process.

Blackpool's advisers during the process have included DWPF, DAC Beachcroft and Local Partnerships. Macquarie Capital acted as financial adviser to CLP, with Linklaters providing legal advice.

The contract for the project runs until 2035. Around 85% of the council's lighting and traffic signals assets have already been replaced, including 16,253 street lights and 2,420 traffic signals.

Cllr Simon Blackburn, leader of Blackpool Council, said:

"This is fantastic news for Blackpool. The service that residents will receive will remain the same but in conjunction with our service provider Community Lighting Partnership we have renegotiated the contract at a much better rate. I'm sure many residents spend time researching different options when mortgaging their property and this is the same exercise just on a larger scale. During the tough financial times we are facing it is vitally important that we scrutinise every contract we have to ensure that we are getting the best possible deal."