Beijing-parking-ITDP-China

Indirect investment costs for 12,000 on-street parkingspace demonstration project in Guang’anmenIndirect investmentcostsUnitsTotal costs(RMB)Kits for technical staff 20 60,000Workroom 1 197,000Cars 20 2,000,000Furniture for127 317,500employeesComputers and office 127 444,500equipmentCustomer office 2 677,000establishmentCell phones 611 244,400Working clothes 523 261,500PM fixture kit 1 100,0005% unforeseen costs 215,095TOTAL ¥4,516,995Additionally, the management cost for the 6month construction period is added. For the1-month trial period, when the operator is operatingat full costs but receives no income, investmentcosts are allocated as well.Total investment costs for 12,000 on-street parkingspace demonstration project in Guang’anmenTotal investment costs Total costs (RMB)Direct investment costs 63,353,500Indirect investment costs 4,516,995Management costs during 1,200,000construction1 month trial operation 4,100,7395% unforeseen costs 3,658,562TOTAL ¥76,829,7966.8.3 Financing costsA project length of 10 year is assumed. For acommercial bank loan 10.2 % interest is assumed,based on the Chinese interest base (6 %) and anadditional 70 % margin (4.2 %). Total interestover 10 years equals to 46,019,833 RMB, makingthe total investment for the operator over a 10year period: 122,849,629 RMB.6.8.4 Operation costsHR costFrom the start of operation, parking inspectorscheck 50 parking places, meaning 240 parkingcontrollers are needed at any given time. With24/7 operation, in the first year 800 day-time and47 night-time parking inspectors are needed.From the second year, 480 parking controllers areneeded for the day-time. From the third year wecalculate with 156 inspectors in the day shift and47 in the night shift, since operation has maturedby then. For comparison, in European cities, withsimilar technology, a controller can check 200parking spaces. Furthermore there is 1 head of thedepartment and another 36 people assisting staff.There should be two brick-and-mortar customersoffices customers office in addition to onlineservice. There will be 1 head of department, 27staff and 10 security personnel operate 7 daysa week. With modern technology, technicalmaintenance is very efficient and only 32 staff areneeded, headed by the CTO. Three IT staff do ITmaintenance. Three staff do PR and marketing, incooperation with the government. Three full timelawyers take care of legal issues.Due to automated software only 10 employeesare needed at the financial department: one chiefaccountant, 4 financial administrators and 4 laborissue administrators, as well as the head of thedepartment who is also CFO of the company. ForHR 5 staff are needed. The company managementconsists of a CEO, COO, Head of Purchasing,Quality Control and Secretary/Head of Office.The yearly labor cost of the parking company is32,626,800 RMB in the first and second year anddrops to 18,639,000,- RMB from the third yearonwards, mostly due to a lower number of parkinginspectors.Maintenance cost of the technologyThe maintenance cost for the hardware is containingall the necessary expenses to ensure 24/7operation of the equipment. These costs includespare parts, the cost of charging the batteries(even with solar charging the batteries have to becharged once a month).Maintenance cost (support) and license feeof softwareFor maintenance to the software system, a fairlyhigh 10% of acquisition cost is assumed, sinceBeijing Parking, ITDP-China 1421 March 2015