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NPHDB seeking operator for New Children’s Hospital car park

By Paul Mulholland - 27th May 2022

Children’s Hospital

The national paediatric hospital development board (NPHDB) has undertaken a market consultation exercise in relation to the operation of the car park for the New Children’s Hospital. 

A preliminary information memorandum was issued by the NPHDB, on behalf of Children’s Health Ireland (CHI), in relation to a proposed tender competition for a car park concession contract for the hospital. 

The purpose of the market consultation exercise is to give the NPHDB an opportunity to consult with interested parties on various aspects of the proposed contract in advance of the launch of the tender. 

The objective of the tender will be to select an economic operator, or consortium of economic operators, which will provide funding for the car park in return for the grant of a concession to operate the car park for a term of 30 years. 

The car park will have parking capacity for approximately 1,000 vehicles. 

There will be 325 CHI staff spaces; 70 CHI social care spaces; and 575 paying visitor spaces split across two levels – basement and lower ground. 

There will also be 30 surface level parking spaces outside the emergency department (ED) to cover emergency and social care spaces. 

It is envisaged that the operator will be given six months to complete the fit-out and installation works and prepare the car park for operational use. 

This mobilisation period will run in parallel with the hospital commissioning phase. 

Once the hospital commissioning and mobilisation phase has concluded and the hospital is fully open, the winner of the contract will commence operating the car park on a commercial basis, under licence from CHI. 

No lease or tenancy rights will be granted over the car park. The contract holder will be solely responsible for the operation, management, and maintenance of the car park over the term. They will be required to operate the car park “to a very high standard of customer service and in conformance with a service level regime to be specified in the contract”. 

It is envisaged that a capital premium payment (‘concession fee’) from the operator will be required up-front in consideration for obtaining the concession to operate the car park. 

“This concession fee shall be bid in by tenderers during the competition,” according to the NPHDB. 

A total of €3 million “will be payable” by the operator upon the execution of the contract: €1 million will be payable upon confirmation of the placement of an order for the car park’s access control system; €1 million will be payable upon successful instalment and commissioning of this system; and the balance of the concession fee will be payable upon successful completion of the mobilisation phase and full operational commencement. 

In addition, it is expected that the operator will be required to pay a “retention fee” (to be specified by CHI) upon execution of the contract. This fee will be reimbursed in tranches if the set targets are achieved on time. 

In return for payment of the concession fee, the operator will have the right to receive, during the term, all of the income from the 575 paying visitor spaces; and fixed quarterly payments in arrears from CHI in respect of the CHI staff spaces, the CHI social care spaces and the ED space. 

The CHI payment for these spaces will be confirmed in due course. 

A maximum daily charge of €10 per day will apply to paying visitor spaces. This capped daily rate is imposed by Ministerial order. Hourly rates will also be specified. 

It is currently anticipated that the tender competition will be launched in mid-June 2022 with the publication of a concession notice in the Official Journal of the European Union.

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