# Feasibility Study for the Establishment of a Multi-Story Car Park, A Case Study

Dunya S. Ellk1, Alyaa H. Mohsin2, *, Sada A. Hasan3
1 Department of Roads and Transportation Engineering, Faculty of Engineering, Mustansiriayah University, Baghdad, Iraq
2 Departmentsof Civil Engineering, Faculty of Engineering, Mustansiriayah University, Baghdad, Iraq
3 Department of Civil Engineering, College of Engineering, University of Al-Qadisiyah, Al-Diwaniyah, Iraq

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© 2020 Ellk et al.

open-access license: This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International Public License (CC-BY 4.0), a copy of which is available at: (https://creativecommons.org/licenses/by/4.0/legalcode). This license permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

* Address correspondence to this author at the Departmentsof Civil Engineering, Faculty of Engineering, Mustansiriayah University, Baghdad, Iraq; Tel: +9647714223585; E-mail: aliaahammadi@yahoo.com

## Abstract

### Background:

Cars cruising to search out a parking zone represent a key component of the traffic on urban university campuses.

### Objective:

The research aims to prepare a feasibility study for a multi-story car park for Engineering College /Mustansiriayah University through public-private partnership as a solution for parking problems which consumes a lot of time and effort.

### Methods:

At first, theoretical information was collected about the subject of the research; a field survey was conducted to estimate parking demand and supply. A feasibility study was prepared for a proposed four-story car park.

### Results:

#### 4.7.2. Revenues

The project aims to solve the problem of parking for the staff of the Faculty of Engineering, and provide regular parking suitable for visitors to the College in the case of holding scientific seminars and conferences; however, some financial returns can be achieved. The maximum capacity of the proposed park is 560 cars, and the park will be used in the morning shift and afternoon shift, so the maximum number of cars occupied the park will be 1120/ day. 315 of them are allocated for the use of Engineering College Staff and the remaining number will be used for Non-Staff cars such as students with nominal fees. Table 3 explains the estimated annual revenues, while Table 4 explains the annual net profit through the operational life of the project, taking into account that the duration of establishing the project is two years. Fig. (5) shows estimated cash flow.

### 4.8. Economic Indicators

For the purpose of the economic evaluation of the project, some economic indicators have been adopted, such as a simple rate of return, net present value, internal rate of return, and payback period [13].

Table 3. Estimated annual revenues ID.
Park Users Num. of Cars Per Day Car Parking Fees Per Day (ID) Annual Revenues (ID)
College staff 315 1000 75600000
Non-college staff 805 2000 386400000
Sum. Per day 1120 3000 462000000
Annual Revenue =385000 $*consider the dollar exchange rate =1200ID #### 4.8.1. Simple Rate of Return The project achieves a simple rate of return (5.49%), which represents the percentage of the net profit of the proposed project compared to its estimated cost as shown in Equation (1) [13]:  (1) #### 4.8.2. Net Present Value (NPV) The net present value of costs and returns is calculated during the life of the project at a discount rate of 5% and a discount rate of 10%. It calculated using equation (2) [13].  (2) It can be noticed from Table 5 that a 5% discount rate gives positive (NPV), which means the project is economically feasible at this discount rate. #### 4.8.3. Internal Rate of Return (IRR) The discount rate, which is often used in investment budgeting, causes the present value of all cash flows from a given project to be zero [14]. IRR represents the discount rate, at which the investment value is equal to the present value of the net cash flow throughout the life of the project. Depending on Table 5, the project can achieve (IRR= 8.1), as explained in equation (3).  (3) Table 4. Annual net profit$.
- Year Construction Cost
$Maintenance Cost$ Revenues $Annual Net Profit$
0 2020 2070438 0 - -2070438
1 2021 2070438 0 - -2070438
2 2022 0 0 385000 385000
3 2023 0 0 385000 385000
4 2024 0 0 385000 385000
5 2025 0 0 385000 385000
6 2026 0 0 385000 385000
7 2027 0 62,113 404250 342,137
8 2028 0 62,113 404250 342137
9 2029 0 62,113 404250 342137
10 2030 0 62,113 404250 342137
11 2031 0 62,113 404250 342137
12 2032 0 65,219 424463 359244
13 2033 0 65,219 424463 359244
14 2034 0 65,219 424463 359244
15 2035 0 65,219 424463 359244
16 2036 0 65,219 424463 359244
17 2037 0 68,480 445686 377206
18 2038 0 68,480 445686 377206
19 2039 0 68,480 445686 377206
20 2040 0 68,480 445686 377206
21 2041 0 68,480 445686 377206
22 2042 0 71,904 467970 396066
23 2043 0 71,904 467970 396066
24 2044 0 71,904 467970 396066
25 2045 0 71,904 467970 396066
26 2046 0 71,904 467970 396066
27 2047 0 75,499 491368 415870
28 2048 0 75,499 491368 415870
29 2049 0 75,499 491368 415870
30 2050 0 75,499 491368 415870
- Sum. 4,140,875 - 12,602,314 6,820,867
 Fig. (5). Estimated cash flow.

Table 5. Discounted net present value.
No. Year Net Present Value NPV at 5% Discount Rate NPV at 10% Discount Rate
0 2020 -2070438 -2070438 -2070438
1 2021 -2070438 -1971845 -1882216
2 2022 385000 349206 318182
3 2023 385000 332577 289256
4 2024 385000 316740 262960
5 2025 385000 301658 239055
6 2026 385000 287293 217322
7 2027 342,137 243150 175570
8 2028 342137 231572 159609
9 2029 342137 220544 145099
10 2030 342137 210042 131909
11 2031 342137 200040 119917
12 2032 359244 200040 114466
13 2033 359244 190515 104060
14 2034 359244 181442 94600
15 2035 359244 149273 64613
16 2036 359244 164574 78182
17 2037 377206 164574 74628
18 2038 377206 156737 67844
19 2039 377206 149273 61676
20 2040 377206 142165 56069
21 2041 377206 135395 50972
22 2042 396066 135395 48655
23 2043 396066 128948 44232
24 2044 396066 122807 40211
25 2045 396066 116959 36555
26 2046 396066 111390 33232
27 2047 415870 111390 31722
28 2048 415870 106086 28838
29 2049 415870 101034 26216
30 2050 415870 96223 23833
- Sum. 6,820,867 1,314,762 -813,169

#### 4.8.4. Payback Period

The period required to recover the capital invested in the project is ten years and is calculated from equation (4) [14]

 (4)

Which means that the investor will have his investment back after 10 years of operating the project

## CONCLUSION

This research aims to solve the problem of parking for employees of the College of Engineering as a case study. It was found that the peak parking demand is determined by (315 car), while the current parking supply can accommodate only 48% of parking demand. A multi-story car park will be a good solution. Socially, the proposed multi-story car park will have service benefits. Technically, the project has a maximum capacity of 560 cars, which will cover the need of the College with an opportunity to achieve some financial returns. The implementation of the project in the manner of investment in accordance with BOT contracts will provide a suitable source of funding for the project as well as ensure the quality of implementation and operating efficiency. Economic indicators indicate that the project is economically feasible as it will have a Simple Rate of Return 5.49% of the initial investment. It has positive NPV at 5% rate of discount, which means it is feasible and has an internal rate of return 8.1%. Also, the payback period is 10 years, which means that the investor will have his investment back after 10 years of operating the project. As the project is sensitive to inflation, incomes are expected to increase by 5% or more in five years. This paper can contribute to the body of knowledge through including the participation of the community in the procurement of infrastructure.

Not applicable

Not applicable.

None

### CONFLICT OF INTEREST

The authors declare no conflict of interest, financial or otherwise.

## ACKNOWLEDGEMENTS

The authors would like to thank (Dr. Wafaa Al-Tameemi, Health and Life Sciences, Coventry University, UK) for constructive criticism of the manuscript.

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