operator implements and operates the system fora 10-15 year period and all <strong>parking</strong> revenues arepaid into bank accounts of the city government.From this revenue the private operator is paidbased on fixed fee, proposed in the tender andacknowledged in the contract, or better, based onrevenue share. With a revenue share the governmentreduces the risk of possible, lower thanexpected <strong>parking</strong> revenues.Because all <strong>parking</strong> revenue is funneled throughthe city-owned accounts, plenty of revenue is leftfor improvements to public transport, walkingand cycling improvements. At the end of thecontract the ownership of the <strong>parking</strong> system istransferred to the city government, who can thendecide to operate themselves or contract out anew tender for private operation.Advantages for the government:●●An advanced <strong>parking</strong> equipment and softwaresystem at zero cost;●●It can tap from private experience in <strong>parking</strong>technology and operation;●●Parking data are obtained at no costs;●●Control over <strong>parking</strong> revenue and transparencyto drivers;●●Much higher <strong>parking</strong> revenue that canbe used for investment in transportationalternatives.Crucial is to have a bid with terms of referencethat include detailed system and operationalrequirements and a contract with service levelagreements in as much detail as possible. Sincethis work needs to be done before the projectstarts, expert advice is required up front. Theoperator should be held accountable to the SLA,with fines for non-compliance and even terminationof the contract if no solution exists.Fee (fixed orrevenue share)City government(or city-ownedcompany)PrivateoperatorParkingrevenueParkingsysteminvestment,technology,operationalexperienceDriver's <strong>parking</strong> feeDriver's <strong>parking</strong> feeProposed <strong>parking</strong> business modelDriver's <strong>parking</strong> fee<strong>Beijing</strong> Parking, <strong>ITDP</strong>-<strong>China</strong> 1401 March 2015
6.8 Costing & financeSince no detailed study has yet been done in theactual number of on-street <strong>parking</strong> spaces, forthe purposes of this analysis it is assumed that,based on the size of the Guang’anmen and similaron-street <strong>parking</strong> projects in Chinese cities, thesystem would comprise of 12,000 on-street <strong>parking</strong>spaces.6.8.1 Direct investment costsThe direct investment cost items are describedbelow. The investment costs exclude bollards andenforcement equipment (clamps, towing vehicles,etc.), but include Chinese VAT of 3%.Smart <strong>parking</strong> metersTo minimize the maximum walking distance toa meter and prevent queues for <strong>parking</strong> paymentand, a meter is preferred for every 30 <strong>parking</strong>spaces. With 12.000 <strong>parking</strong> places a total of 400smart <strong>parking</strong> meters is needed. Costs includeoccupancy sensor signal receivers.Occupancy sensorsAll on-street <strong>parking</strong> spaces have occupancysensors. Construction costs are included in theunit costs.PDA and separate mobile printerOne <strong>parking</strong> inspector is expected to control 50<strong>parking</strong> spaces. For 12,000 <strong>parking</strong> spaces, 410<strong>parking</strong> inspectors are needed per work shift.Inspectors use a PDA for license plate scanning,communication with the control center andtaking photo evidence of <strong>parking</strong> violations. Theprinters are needed for printing of fines. Technicalmaintenance can be done with 10 technicians pershift, for which PDAs are needed as well.On-board tagCosts for on-board tags for fully automated<strong>parking</strong> payment are included in the costs ofthe system. Tags are beneficial to drivers whopark frequently in the paid <strong>parking</strong> zone, suchas residents and employees working in the zone.Although the number of users is expected to belower, a total of 12,000 tags are assumed.Led occupancy boardsThe occupancy boards need to be placed at strategiclocations, depending on the street network.An estimated number of 120 pieces are expectedto cover the planned <strong>parking</strong> zones.Software systemsSeveral software systems are needed for differentequipment and the system’s control center.Software needs to be localized for <strong>Beijing</strong>’s projectand the interface has to be developed for integrationwith the systems in use by related stakeholdersin <strong>Beijing</strong> (such as the CommunicationCommission for the sharing of <strong>parking</strong> data andthe Traffic Police for enforcement) several departmentsexisting system.Parking space demarcationAll on-street <strong>parking</strong> spaces are demarcated andgiven an ID number.Direct investment costs for 12,000 on-street <strong>parking</strong>space demonstration project in Guang’anmenDirect investmentcostsSmart <strong>parking</strong>metersParking meters’installationUnits Total costs(RMB)400 16,000,000400 600,000Occupancy sensor 12,000 18,000,000PDA and separate 410 2,870,000mobile printerOn-board tags 12,000 9,600,000Occupancy boards 120 9,600,000Software 1 3,000,000Parking space 12,000 720,000demarcation5% unforeseen costs 2,963,500TOTAL ¥63,353,5006.8.2 Indirect investment costsThe <strong>parking</strong> company needs to set up an office,customer service center, work room for technicians,training facilities, <strong>parking</strong> inspectors’changing room and storage, PDA charging andinspector dispatching center. Assumed in thecost calculation is for these spaces to be rentedwith interior construction to be done. Officefurniture, also including computers, printers andrelated office equipment (scanner, internet, etc.)are needed. Parking inspectors’ work cloths, 20cars, tool kits, and spare parts for the hardwareequipment.<strong>Beijing</strong> Parking, <strong>ITDP</strong>-<strong>China</strong> 1411 March 2015
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