BBMP may halve parking facility price to attract bidders

Having built a multi-level parking facility worth several crores at Freedom Park in the heart of Bengaluru, the BBMP is struggling to find an agency to operate the structure despite floating three tenders in four months.

Despite issuing several tenders in the past four months, the Bruhat Bengaluru Mahanagara Palike (BBMP) did not find a contractor.

BBMP sources say the tender’s high tariff has left bidders disinterested since they think it’s difficult to recover the investment during the pandemic. The Palike is now forced to slash the tariff to lure the bidders. “We had fixed the tariff after consulting with experts and considering the traffic density around the facility. But there’s been no response to the three tenders we floated. We’re considering modifying the bid and revising the tender conditions,” a senior BBMP official said.

Officials said the civic body was mulling reducing the reserve price or giving bidders a trial period. “Bidders are also unsure how much business they’d get since the facility is new and how the public would respond. So we may also allow them to operate on a short trial period,” revealed a BBMP engineer. They said bidders want the annual reserve price of Rs 4.5 crore reduced by 50% to Rs 2 crore. The BBMP has been trying to fix an operator for the facility since August 2021 and had even promised to mark the adjoining areas as no-parking zones to ensure the facility gets steady business.

“The first tender was called in August and the second in October. Bidders said the free parking in and around Kalidasa Road could reduce inflow to the facility. We assured them that we’d mark the stretch no parking zones, but they’re not convinced,” said a BBMP engineer.

Work on the parking facility, which can accommodate 556 cars and 455 two-wheelers, began in 2017 and was completed in November 2021 after many hurdles.