Annex 4 Parking Measures by PPP

Tendering and Contracting

Typically, it is in a Municipality’s interest to invite expressions of interest for a concession at the outset to generate demand, while providing only outline details, without commitment. It is recommended that detailed bids for off-street facilities should not be sought until most of the risks concerning on-street parking have been addressed (i.e., that a strategy and action plan has been agreed and is either on-going or at a minimum, committed, possibly through a Comprehensive Mobility Plan). Failure to do this may make in effect concessions unleasable. The tenders should include a detailed financial analysis and the Municipality would need to develop an informed judgment on the bidders’ assumptions.

The concession agreement should detail the responsibilities of the parties. The concession holder should agree to provide a set number of off-street spaces by a given date. The operating period would be fixed and delay in entering service would be a revenue risk borne by the concession, while early entry into service would extend the revenue period. Such an arrangement provides a considerable incentive for timely construction. The responsibility for design and construction should be delegated to the concession, subject to applicable standards. Construction bidding would also be delegated, subject to the requirements of the loan providers. The Municipality should, via the concession agreement, distance itself from implementation responsibility, while providing for proper project monitoring.

The fee structure would be set out in the concession agreement, possibly with some flexibility in the short-term, long-term mix of spaces, and in rates by time period, subject perhaps to an overall average maximum rate per hour per space for each year of the concession.

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