Annex 4 Parking Measures by PPP

Build-Operate-Transfer (BOT)

Apart from the stated possibilities for attracting private investors, other options exist for off-street parking on private land, which is municipal property. Build-Operate-Transfer, or BOT, is a broadly applied scheme for financing the construction of facilities requiring high initial infrastructure costs. Under this scheme, the Municipality provides private land (which is municipal property) for the project. The private investor is tasked with organizing, financing, and constructing the required infrastructure and facilities, based on previous studies or projects. The construction requirements are agreed and financing is covered completely by the investor. After construction is complete, the investors are given the right to operate the facilities, obtain benefits from operations for a set time period (in order to recover the initial investment) as well as the expenses, and obtain a profit, estimated by a financial model and previously agreed upon by both parties.

Usually, the agreement between the parties includes a guaranteed minimum annual profit for the investor, in order to guarantee that a minimum set of parameters under the financial model and the capital return are obtained.

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