Project Summary:
Background
San Isidro is Peru’s financial center and has an estimated deficit of 10,600 parking spaces, which led to widespread illegal parking on streets that contributed to high levels of congestion. Accordingly, the municipality was willing to consider an unsolicited proposal from a private developer that planned to build an underground parking facility beneath a major thoroughfare.
Project Structure
The unsolicited proposal was structured as a 30-year concession for the design, financing, construction, operation, and maintenance of a three-story underground parking area that could accommodate 822 vehicles. The facility would be built along four blocks of Rivera Navarrete Avenue, the main corridor of the San Isidro area, and had an investment value of approximately USD 25 million. The project company would assume all of the technical and financial risks and recoup its investment from parking fees collected over the concession period.
The project was planned with four main access points, two of which were specially prepared to be accessible by people with disabilities. In addition, the parking facility would include ATMs, bicycle docks, carbon dioxide detectors, a guided system to find available spots, automatic entrance and exit gates, and security cameras. In parallel, the main avenue was renovated with eight-meter wide sidewalks, state-of-the art street lighting, and additional urban furnishings, such as benches and traffic signals.
Lessons Learned
The project was inaugurated in September 2016 and the parking tariff is charged by the minute, rather than by the hour. The municipality is entitled to receive 10 percent of the monthly gross revenue generated by the parking area.1 The project is an example of a successful PPP that benefits both partners and, most notably, helps alleviate congestion in a densely populated city by developing space belowground.
Footnote 1: Source(s) http://msi.gob.pe/portal/ accessed 15 January 2019.
