TTI moves to expand parking coverage

Tendy Three Investments (TTI) has proposed securing a US$5 million loan facility to rehabilitate parking bays in Bulawayo, in a move aimed at expanding coverage under the city's parking management system and easing congestion in the central business district.

The proposal, submitted to the Bulawayo City Council (BCC), would see TTI finance the upgrade of parking infrastructure, with repayment expected to be covered through the council's share of parking revenue over a three-year period.

If approved, the arrangement would also result in the extension of the current parking management contract between BCC and TTI by four years, moving its expiry from 2027 to 2031, to allow the company to fully recover its investment.

According to a recent council report, the project has struggled to meet initial targets since its launch in February 2022. While the agreement required the city to provide 7 200 prepared parking bays at inception, fewer than 1 000 were available at the time. Four years on, only 5 835 bays are operational out of a potential 10 670, leaving about 45.3 percent of parking spaces unmanaged.

This shortfall has contributed to congestion in unregulated areas, reduced revenue potential, and delayed TTI's ability to recoup its investment.

In response, TTI has offered to take over the responsibility of preparing and rehabilitating the outstanding bays, as well as sections of the CBD road network. The broader rehabilitation programme is estimated to cost US$8.5 million and would be implemented in three phases over approximately eight months.

The works are expected to include upgrading parking bays and repairing carriageway sections to improve accessibility, road conditions, and overall efficiency of the parking system.

Council officials noted that financial constraints and delayed maintenance have hindered the city's ability to prepare the remaining bays, prompting the need for private sector intervention.

To fund the project, TTI plans to secure a US$5 million loan, supplemented by US$1.4 million and ZiG 8 million already ring-fenced by the city for road rehabilitation. The loan would be repaid using proceeds from parking fees, particularly the 30 percent revenue share allocated to BCC.

The proposal also calls for the city to provide a credit guarantee, which TTI says would help secure favourable financing terms from lenders.

In addition, the contract between BCC and TTI would need to be amended to transfer responsibility for parking bay preparation to the company, alongside the development of a comprehensive financial model outlining projected revenues and repayment mechanisms.

The existing agreement between the two parties is a six-year Build, Operate and Transfer (BOT) contract running from September 2021 to 2027, with an option to extend it to a total of ten years.

If implemented, the initiative is expected to significantly improve parking infrastructure and management in Bulawayo's CBD, enhancing traffic flow and boosting municipal revenue collection.