Annex 4 Parking Measures by PPP

Role of Municipality

The Municipality’s objectives within a concession agreement would be to assure that sufficient parking capacity is provided, while protecting the interests of users by limiting parking fees to a reasonable level, while also minimizing its own capital expenditure. The Municipality should also ensure that the legal framework allows the parking improvements including identification of modifications to existing legislation.

The results of a financial analysis will indicate whether a private sector concession is practicable, given some support from the Municipality (possibly in turn from central government funding assistance, such as the JNURRM initiative). It is recommended that such support be mainly in the form of a subsidy towards land acquisition and through guarantees provided in the concession agreement. The financial analysis would determine the necessity for the Municipality to provide up-front financial support for the construction or implementation cost of facilities. Typically this is not required, as the primary guarantee needed would be to implement an action plan for on-street parking in the catchment area to support the demand for the off-street facility. However, in the case of Indian cities where parking management is at a relatively low development level, demand risks are higher and may not be easily taken by the private sector.

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