GOOD PRACTICE EXAMPLE
| Country: | Hungary |  |
|---|---|---|
| Product group: | lighting | |
| Name of the Institution: |
Local Authority of the Municipality of Budapest |
Overview
Budapest is the capital of Hungary with a population of 1.75 million. Budapest consists of twenty-three districts. The Hungarian capital city has a peculiar dual self-government system. This means that in addition to the Budapest Municipality, the local government of Budapest, each of the twenty-three districts have their own government, the so-called district governments, with elected mayors and a body of representatives.
This Best practice is a procurement of the Municipality of Budapest which is in this case concerns the whole city.
Specifications of the Institution
| Address: | Városház utca 9-11. 1052 Budapest |
|---|---|
| Number of inhabitants: | 1.7 million |
| Contact person: | Imre PÁSTI |
| Position: | |
| Telephone: | +36-1-327-1411 |
| Telefax: | +36-1-327-1887 |
| E-Mail: | |
| Website: | www.budapest.hu |
| Number of employees (management): | This department: between 10-15 |
Organisation of the procurement
The Municipality of Budapest is responsible for the public procurement at three stages:
- The procurement activities of the mayor’s office. This is mainly organised and implemented by a special Procurement Department. In special cases, when the special knowledge, expertise is needed the other departments have the right to procure.
- The purchasing of the institutions which are operated by the municipality (schools, hospitals etc.) Most of them has the right to do public procurement but the approval of the mayor’s office is needed.
- Firms which are partly or entirely owned by the municipality are responsible for their own procurement but in special cases (value threshold, infrastructural development etc.)
The municipality has the proper rules and laws for all cases.
This case belongs to the first type, and is organised by the Department of Transport.
Measures
- Budapest has 911 traffic lights, operated by The Municipality of Budapest
- The previous contract ended on 31 December 2005
- The public procurement was to find a company for an 8 year operation contract, combined with installation of new LED lights
- Out of the 911 traffic lights 241 must be changed to new ones, around 300 must be modified
- Goal: energy saving => operational costs decrease by 17%
This is good for:
- the environment: energy saving
- the municipality: they do not have to pay for the modernisation
- the company: after the modernisation (2 years) they will get the same amount of money from the municipality for six more years as operational costs but the real operational costs will be lower by 17%
Success
According to the calculation of the Department of Transport after the installation of the new LED lights the energy use of the whole system will decrease with 75%.
Further publicly available info about the concrete project
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