Establishment of parking meters on Tashkent streets entrusted to one company without a tender

In accordance with the presidential decision “On additional measures for the further development of the public transport system of Tashkent city”, it was planned to establish paid parking spaces on the basis of public-private partnership in 10 central streets of the capital. Fidokor, Amir Temur, Nukus, Bratislava, Mirabad, Glinka, Avliyoota, T. Shevchenko, Said Baraka, Moshtabib, Yakub Kolas streets are included in the list.

By the decision of the Tashkent city governor on December 29, 2022, the establishment of paid parking spaces on the above streets was assigned to “Kasy Park” LLC.

It is known that the PPP Development Agency under the Ministry of Finance registered the PPP contract between the Tashkent City Transport Department and “Kasy Park” on August 22. The cost of the project is 9.732 billion soums. The term of the contract is 10 years.

According to the agreement, roadside spaces on designated streets were leased to “Kasy Park” LLC for installation of parking meters and charging devices for electric cars. The enterprise is obliged not to build capital, light-type buildings and other types of auxiliary devices in these places.

Within three months, an e-platform of paid parking places will be integrated into the information system “Administrative Practice” of the MIA State Road Safety Service and the complex program “Digital Tashkent”.

“Kasy Park” LLC was registered in Tashkent on March 7, 2018. The main type of its activity is the wholesale trade of wood, building materials and sanitary-technical tools. The charter capital is 10 million soums. 60% share of the company belongs to the son of Mirodil Fozilov, 40% share belongs to “Old Folk” company. Head – Sarvar Sultonkhodjayev.

Mirodil Fozilov, the main founder of “Kasy Park”, also owns shares in “Paper World” (100%), “Benchmark Distribution” (100%), “Royal Central Development” (100%), “Oazis Lux Investments” (50%), “Premium Paper” (50%) and “SD Big-Garden” (25%).

“Old Folk” LLC was registered on August 4, 2022 (18 days before the signing of the PPP agreement between the Tashkent city transport department and “Kasy Park”). Authorized capital – 1 million soums. Founders – Sarvar Sultankhodjayev, Akmal Yusupov, Komronbek Amirsaidov and Saidazim Kasimov (each has a 25% share).

Again, no tender and only to one company

According to economist Otabek Bakirov, paid parking on the roadside is an economically based and fair idea, but the above decision can easily “single-handedly discredit” it.

“First of all, there was no public-private partnership tender. We don’t know if the other potential suitors had offers, and if so, what?

Secondly, giving 10 streets in the center to one partner is very stupid. Stupid decision of public-private partnership agency and Tashkent city administration. The beginning of the creation of another parasitic monopoly. Under normal circumstances, 10 streets could be divided into at least two or three lots and offered to different companies, not affiliated with each other. In normal states, for example, parallel and perpendicular streets, or all streets in a district, are not assigned to the same company. Then the private partner cannot exert pressure on the state, and the public will again have a permanent means of restraint.

Thirdly, what conditions were agreed with the chosen partner already in August last year remains a closed topic. They did not find it necessary to tell us the terms other than the agreement was concluded for 10 years. How will the proceeds be distributed? How much to the state, how much to the partner? What are the tariffs for weekends and off-peak hours? In what cases is the contract terminated early?

Fourthly, world experience and general common sense require that paid parking should be parallel with the establishment of transport links at the entrance to the city and the establishment of quality public transport and pedestrian infrastructure in paid parking areas. How many transport links have been established today? What are the conclusions regarding the frequency and interval of traffic on the selected streets? Is it possible to walk on these streets?” the economist said.

There is currently no information on when the paid parking spaces along the road will be established and operational, and what the prices will be.

According to the draft decision of the Cabinet of Ministers, which was discussed last year, the payment value is determined by the Tashkent city administration. This should take into account the population density and the carrying capacity of the city streets.

In November 2022, the city transport department stated that paid parking meters for 2,251 cars will be established on 10 streets, 2 parking meters and 2 tow trucks will be purchased to record violations. Parking along the road will be free of charge only for persons with disabilities.

Parking meters are expected to reduce congestion in the city center and encourage people to use public transport more.