HCM City has mapped out many underground parking lots. However, most of these projects remain on paper. — Photo zing.vn

HCM CITY  --  HCM City has mapped out four underground parking lots to be built by private investors, but most of these projects remain on paper.

The parking spaces include lots under Lê Văn Tám Park, Tao Đàn Park, Trống Đồng Stage and Hoa Lư Stadium, all in District 1.

With total investment of VNĐ1,748 billion (more than US$75 million), parking spaces under Lê Văn Tám Park would accommodate 1,300 cars and 2,000 motorbikes.

Although construction of the parking lot began in 2008, the developer has yet to announce its financial sources for the project.

In 2009, the HCM City People’s Committee signed a build-operate-transfer (BOT) contract and granted a license to the Investment and Development for Underground Space Corporation (IUS).

In March 2017, the Department of Transport and relevant agencies  completed all essential paperwork and the investors promised to start the work by the end of 2017.

However, IUS has not finished the technical design or offered a solution to remove trees, and still has no construction license.

The parking lot to be built under Hoa Lư Stadium has an estimated investment of VNĐ3 trillion, with space for 2,550 cars and 2,870 motorbikes.

With investment of VNĐ740 billion, the 10-level Trống Đồng lot would accommodate 890 cars and 400 motorbikes.

The parking lot at Tao Đàn Park would provide parking spaces for 1,200 cars and nearly 900 motorbikes, with total investment of VNĐ896 billion.

Illegal parking lots in inner city districts have appeared on pavements in the city as a result of the shortage of parking lots.

Investors demand incentives

Vũ Xuân Nguyên, head of the Division for Management of Transportation Work Construction at the HCM City Department of Transport, said that agencies had created favourable conditions for investors and developers to complete these projects.

However, they have not completed procedures to start construction of most of the projects and they have not announced the sources of funding for most of these projects.

Developers have said that the time needed to get a return on their investment in underground parking lots has caused them to seriously reconsider the projects.

Investors have asked the city for preferential policies on taxes (including land-use taxes), bank loans, and parking fees (which have not been announced).

Experts have said that underground parking would have a negative impact on the environment, especially on urban waste water drainage.

Moreover, the newly built underground parking lots will not be able to accommodate the rising number of private cars and motorbikes.

Transport experts said the city must improve supervision of these kind of projects. For licensed projects, the government will shift the  BOT projects to a Public-Private Partnership (PPP) scheme.

Experts also said the underground parking garages should be designed as “smart parking” lots and include security measures.

To speed up the construction pace, city authorities should eliminate contracts with incapable investors and resolve the parking fee situation, they said. — VNS.