City of Sabac has presented a public parking garage project that should be implemented through a public-private partnership with the elements of concession. As it was announced, Sabac plans to invite bids from prospective concessionaires for the construction of a public parking garage in March 2013.
The value of this project is estimated at EUR 5 million, and it should provide the citizens of Sabac with minimum 236 new parking places.
Sabac will secure a capital incentive for the project implementation in the amount of up to EUR 1.2 million, while the European Bank for Reconstruction and Development (EBRD) should consider granting a loan of up to EUR 4 million to the concessionaire.
In the first phase of the tendering process, all qualified interested persons that meet the requirements to implement the project will be shortlisted. The second phase will see the evaluation of technical and financial bids for the purpose of selecting the most favorable one. The plan is to let the concessionaire determine parking rates in the new garage.
The concessionaire chosen will take on the obligation to provide designs and the funding and build, manage and maintain garage over the period that cannot be longer than 30 years. The plan is to have this garage completed in one year.
The concessionaire will also have the right to engage in other commercial activities in that facility, such as car wash, advertising space sales, etc.
According to the applicable Urban Design, the concessionaire will be able to provide maximum 286 parking places.
This garage will be situated in the city core, below Trg Sabackih Zrtava Square, in the immediate vicinity of a large number of public and private facilities. The area designated for this purpose spans 9,457 square meters, and the plan is regenerate the square above the garage and build an open stage, which is a responsibility of the City.
As city authorities explain, Sabac has made a decision to grant a concession for the construction of a public garage after performing a financial analysis and determining that the project is viable when financed with private capital.
- In this way, the City will be able to use the funds required for the construction of this garage to implement other capital projects. By applying its own technical and technological solutions to the construction and use of the garage, the concessionaire will have a chance to increase the viability of this project - said city officials.
As we learned from Sabac authorities, the conclusion that the project is viable is drawn from pretty strong assumptions.