The Private Finance Initiative (PFI) funding will pay for upgrades to 165,000 street lamps in West Sussex and parts of Hampshire.

The councils will invite bids from private sector contractors to carry out the work which will include a 25-year maintenance service.

The upgrade is expected to start in 2009 and be completed in 2014.

'Less light pollution'

Councillor Mel Kendal, of Hampshire County Council, said: "In Hampshire, the PFI means that all street lighting installed prior to 1990 is likely to be replaced.

"It's a massive investment for the area, and a PFI is the only affordable way for the three councils to carry out the necessary work in a timely and cost effective manner."

He added: "Although there will be more lights, energy will be used much more efficiently in the new columns and using white light wherever possible rather than the familiar orange glow.

"Light will also be directed down onto footways and roads, meaning less light pollution in the night sky."