A Parking spot of bother?

Health assets: parking lots and additional revenue

Public Private Partnerships often trigger the visual image of a full DBFOM model (Design Build Finance Operate Maintain) for a large hospital. It certainly contributes to expressions of distrust, or the daunting impression left by these complex contracts based on the use of private sector’s capacities to complement and support a public project.

Yet in numerous cases -in some countries the majority- PPPs are used to provide health authorities to provide staff accommodation (click here for an example in Saudi Arabia and click here for another project in Wales brought to you by Decide), office staff, heating systems, or car parks.

In addition to being an indispensable ancillary service for users and visitors as well as staff, parking lots are an often under-estimated source of additional or third party revenue.

A recent edition of P3 magazine noted, a propos the request for qualification issued for the 800-spot Regina Hospital Parkade car park PPP that it is:

One example of asset monetization projects that are a hot topic across North America. With authorities looking to develop their services and increase revenue, while maintaining their capital budgets, the sector is being earmarked for growth this year.

In terms of revenue stream, it may be worth remembering that in 2021, the NHS pocketed an impressive £50 million recouped on car park users (see your Decide news in February last year: click here)

Drawing on the rationale for PPPs (getting innovation, performance and value for money from the participation of private sector specialists in a given infrastructure project) the NHS is now launching a more ambitious partnership.

NHS Shared Business Services launched a contract notice for a DBFOM project for a total amount of £500 million and broken down in 9 lots to procure “sustainable car parks” for British hospitals.

This translates in a £30 million lot focusing on reducing the carbon footprint of the building of sustainable car parks, which will contribute to Net Zero emissions; another lot insisting on running equipment to recharge electric vehicles’ batteries.

Meanwhile, another lot in the tender looks at different options for the management and operations of the car park. If you are interested in this tender or want to know more: click here!