Research Financing Models for Construction of Underground Garages in Sarajevo

Abstract

AbstractOne of the burning issues of almost every urban environment is parking space. Due to the lack of free land surface in densely populated areas, underground garages' construction is most often resorted to. However, as the adopted regulatory plan limits this space and the network of roads that should accept all the newly created traffic, the number of parking spaces usually does not justify underground garages' financial profitability. Due to the limited budget of local government levels, it is crucial to find the optimal solution for constructing this type of facility that will surely benefit the community and society. Moreover, we can observe this issue from an environmental point of view. The benefit can also be seen by reducing noise and air pollution due to the shorter time that vehicles are looking for a parking space. The paper presents two different ways of financing the construction of three underground garages in Sarajevo. A comparative analysis was performed using the traditional method of financing and public-private partnership. An example of achieving profitability of two financially unprofitable garages in a joint project with one financially profitable garage is presented.KeywordsUnderground garagesParking spaceFinancial profitabilityPublic-private partnership