Proposed Public-Private Partnerships
Almaty City Akimat
Creating Opportunity
Where It’s Needed Most
28 November 2011
Executive Summary
• Parking concession can reduce traffic congestion and air pollution
• IFC can identify a private sector concessionaire using a competitive
tender
• Concessionaire should:
 Invest in on-street parking equipment
 Collect parking fees and enforce parking rules
 Pay share of revenues to the Akimat (actual share TBD)
• Akim’s approval is needed to mandate IFC and to request UNDP
funding for transaction advisory fees.
Why a Concession?
Parking problems
• Circulating cars cause congestion
• Bus stops/pedestrian crossings
blocked
• Parking on sidewalks
• Air pollution
• Parking fees unrelated to parking
time
• Garages underutilized
• Lax enforcement of parking rules
• Limited revenue from parking
Solutions
• Charge drivers for parking
• Variable fee depending on
time/location
• Increased parking turnover good for
business
• City to fund public transit
• Parking revenue to help city fund
public transit
• Private concessionaire incentivized to
enforce parking rules
Success Story: City of London
Discussion
• Congestion Zone: motorists pay
$13.30 to enter the city center
(see map)
• Parking: on-street parking can cost
up to $10 per hour; garages very
expensive
• Public Transport: public transport
is a viable alternative to driving
 Metro/Underground
 Bus service
 Commuter rail
Source: Transport for London, 2011.
Results:
 Public policy: substantial reduction in
congestion, less pollution
 Revenues: city collected $270 per
registered vehicle in FY 2008 for onstreet parking
Parking Payment Methods
Attendant
In-Vehicle meters
Single Space Meters
Cellular parking
Pay and Display
Summary of Parking Options
Type
Description
Equipment
Costs
Operating
Costs
User
Convenience
Pass
Drivers buy and display a pass.
Very low
Medium
Medium
Single-Space Meters
Prepay a mechanical or electronic meter
located at each space.
High
High
Low to
medium.
Pay Box
Prepay into a box with a slot for each
space.
Low
Medium
Low
Pay-And-Display
Meters
Prepay a meter, which prints a ticket
displayed in their vehicle window.
Medium
Medium
Medium
In-Vehicle Meter
Prepay to use a small electronic meter
displayed in the vehicle when it is
parked, that counts down minutes.
Medium
Low
High
Automated Access
System
Pay a machine when entering or leaving
a parking space.
High
Moderate
Moderate
Automatic Vehicle
Identification
Electronic system records vehicles
entering and leaving a parking area.
High
Medium
High
Scope of Services
Mandate
Letter
Signed
Phase 1
(Project
Development)
 Establish strategy  Identify and
select lawyers,
 Obtain approvals
engineers, and
other advisers
Select
Winning
Bidder
Phase 2
(Project
Completion)
Contract
Advisors
 Evaluate bids
 Signing of Project
Contracts
 Final negotiation
Capital
Raising
 Sponsor to raise
loan or bond to
finance project
Internal Due
Diligence
 Legal, financial,
regulatory and
technical due
diligence
 Take corrective
actions
Financial
Close
 Contract signing
 Payments
 Official Handover
Launch
Tender
Process
Regulatory
Framework
 Prepare Project
Contracts
 Suggest
amendments to
regulation if
necessary




Construction
 Equipment and
signs installed
Promotion
Data room open
Prequalification
Buy-side due
diligence
Operation
 Parking services
launched
 On-going
maintenance
Our Experience
Recent activity in the city parking and urban transport development
8
Concession
Concession
Concession
Concession
Loan
Loan
$38M loan to finance
parking concession
in Budapest,
Hungary
$365M loan to
finance parking
concession in Busan,
South Korean
Urban transport and
parking program
Thimphu, Bhutan
$70M loan to finance
parking concession
Beirut, Lebanon
Urban transport
program
Changzhi, China
Urban transport
program
Shijiazhuang, China
World Bank
World Bank
IFC Transaction
Advisory
World Bank
World Bank
World Bank
Loan
Loan
Loan
Greenfield PPP
Loan
Concession
$50m to finance
urban transport
project in Bogota,
Colombia
$45M loan to finance
mass transit system
Guatemala City,
Guatemala
$60M loan to finance
urban transport
project
Lagos, Nigeria
BOT for line
expansion of rapid
transit
Manila, Philippines
$100M loan to
finance national
urban transport
program in
Venezuela
Light Rail Project
Amman, Jordan
IFC Investment
Division
IFC Investment
Division
World Bank
IFC Transaction
Advisory
World Bank
IFC Transaction
Advisory