Finance Minister says parking fee increase as per Concession Agreement

When the Thimphu Thromde increased its parking fees effective from 1st April 2020 from Nu 15 to 20 for 30 minutes for street parking and Nu 10 to Nu 15 for off street parking it said that it had got approval from the Ministry of Finance.

There was widespread criticism of the huge increase in parking fees with people questioning why the Finance Ministry approved the Thromde’s request made in early 2020.

The Finance Minister Lyonpo Namgay Tshering said the matter came from the Thromde via the MoF to be put for discussion in the cabinet.

He said the proposal to the cabinet was not just the hike in parking fees but also increasing the concession period for the Multi Level Car Parks from 22 to 30 years given the 300% increase in construction costs and the need to pay EMIs. Lyonpo said the cabinet did not entertain the increase in the number of years.

On the parking fee hike the cabinet decided that it should be as per the CA between the Thromde and KCR.

The Thromde after getting this approval then hiked the parking fees.

The Prime Minister Dasho Dr Lotay Tshering said that the key point is the increase has not happened due to the MoF but due to the CA. He said that even if the government said not to increase the fee the Thromde would not have listened.

An RAA report which came out in 2020 pointed out that the majority of parking fees went to the parking fee contractors and only a small portion went to Thimphu Thromde.   

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