The two multi-level car parkings (MLCP) in Thimphu are to start operations by July after two years of delay.
MLCP-I, near Thimphu office is 95% complete and MLCP-II, near Zangdopelri, is 85% complete, said Chief Executive Officer of KCR Pvt. Ltd, Kinzang Norbu.
By July 1, both the parking slots would be completed but the commercial space of MLCP-I would require an additional one to two months to complete.
Thimphu Thrompon, Kinlay Dorjee said the Thromde has given a time extension to complete the construction by end of June.
With the completion of the multi-parkings, cars would not be allowed to park on the Norzin Lam, he added.
Works on MLCP-I began from January 2016 and on MLCP-II from March 2015. The agreement signed on September 1, 2014 states the MLCP-I would be completed by November 5, 2017 and MLCP-II by July 1, 2017.
“The initial timeframe was too short and the increase in scope of work delayed the construction,” Kinzang Norbu said.
There was no design at the time of bidding and the construction was carried out at the standard area rate, while, later the design was updated to high international standards, he added.
The parking’s automatic parking management system is brought from Singapore which will have CCTV, LED lighting, ventilation system, fire alarm system, 100% power generator and, electronic system that would indicate to drivers to look for vacant slots, Kinzang Norbu said.
Identifying and relocating of utility lines like telecom services, electricity and sewerage system also delayed the work.
The cash flow and financing gap among the shareholders is also one of the factors that caused delay.
“With the current concession period, the company will run in negative balance when it matures, as we have lost two years of time extension,” said Kinzang Norbu.
In 2014, Thimphu Thromde awarded the integrated parking development and management contract for core Thimphu city to KCR Pvt. Ltd with 22 years contract period with effect from September 1, 2014. The contract period will end on August 30, 2036.
“The company has applied for a time extension of 30 years as initial cost was below Nu. 600mn and it has escalated to about Nu. 800mn,” said Kinzang Norbu.
However, Thimphu Thrompon, Kinlay Dorjee said the Thromde is not the authority to extend the concession period and the issue is under discussion.
The MLPCs also houses 20% of commercial space each to recover the investment of the company.
The commercial space would house diverse businesses with varying rents that are approved under the Thromde’s local area plan, said Kinzang Norbu.
KCR Pvt. Ltd has to pay Nu.12, 345 per parking slot a year to Thimphu Thromde as concession.
The rate of the parking fee for the MLCPs would be pegged to the current town parking lots, that is Nu. 15 for 30 minutes park.
MLCP-I has 352 parking spaces and MLCP-II 222.
Currently, the Thromde receives around Nu. 9-11mn per year from parking fee collections.
The project is a public-private partnership between Thimphu Thromde and KCR Pvt. Ltd.
Thuketn Zangpo from Thimphu