The Opposition says the new signed agreement between the government and UNELCO will place more financial burden on the people.

The government and  UNELCO have signed an addendum of concession in December for UNELCO to operate and manage streetlights around Port Vila and on Efate. 

The agreement was signed between Prime Minister Jotham Napat,  Minister of Climate Change and Adaptation, who is responsible for Energy, Ralph Regenvanu, and the  UNELCO General Manager, Frederic Petit.

Under the agreement, the cost of operating and maintaining the streetlights will be paid by UNELCO customers, through a new line that will appear on its customer’s electricity bill each month.

The Government says the cost will not exceed one vatu.

However, Opposition Leader, Alatoi Ishmael Kalsakau, said this addendum of concession  could have been localized.

“Discussion were made to localize our concession,” said Kalsakau. 

“But with this agreement, it is clear that we are moving away from the original discussion to localize our concession.

“By the way it looks, the government must come back to the consumer to say they have to pay for the light so it can light up the streets that is the responsibility of the government with the local government and this is sad. I appeal to the government to make sure, businesses don’t overcharge people.”

VBTC News spoke with some members of the public, and many raised similar concerns, saying their salaries are already not enough to sustain daily expenses, and that any charge whether big or small but it adds pressure.

On social media, some users also disagreed with the agreement.

However, Prime Minister Napat said the agreement is the only practical option compared to past arrangements.

“At one time it was managed by Port Vila Municipal Council since 2011, and it did not work because the cost of streetlights is quite expensive and the municipal council could not meet these expenses. The government also came up with other arrangements with URA (Utilities Regulatory Authority) to consider tariffs, but unfortunately it could not work until nwo that we have come to sign an addendum of concession”

The government says public safety is the main reason behind the agreement, while the Opposition is focused on the cost and its potential impact on households.

The streetlight agreement came into effect on 1 January and will end on 31 December 2031.