The funding will allow Northamptonshire and Cambridgeshire County Councils to secure private sector partners in a joint project to upgrade 98,000 streetlights over the next 25 years and the installation of almost 14,000 new lighting columns.
Transport Minister, Rosie Winterton said: "Experience shows that better streetlighting helps improve road safety, as well as reducing crime and the fear of crime. I am very pleased that Cambridgeshire and Northamptonshire are jointly using PFI arrangements to deliver real benefits to motorists and pedestrians."
The next stage in the process is for the Councils to discuss with potential partners how the work will be undertaken. When this is complete, work could start in late 2009.