A new vehicle parking management company - City Parking - that is wholly owned by Harare City Council has started operations. City business development manager Mr Alois Masepe was on Thursday upbeat about the new parking management entrant.
He said the new company was formed in response to the failure by EasiPark to properly manage the parking business and "reluctance to declare profits to the city".
The city and EasiHold, EasiPark's parent company are waiting for results of an arbitration case to end the joint venture.
City Parking's area of operation is west of Chinhoyi Street and includes the whole of Park Street and stretches to the downtown area bordering the Kopje zone.
On the other hand EasiPark controls the area bounded by Fourth Street to the east and Chinhoyi Street to the West, Samora Machel to the North and Charter Road to the south.
Sources at EasiPark revealed that US$1,3 million was ready to be shared between the city and EasiHold -- its South African joint partner. The city is entitled to 60 percent of the profit share.
Harare councillors have agreed to terminate the joint venture.
"The creation of City Parking was in response to the failure by EasiPark. If EasiPark had performed as earlier agreed this new parking venture would not have been necessary.
"Vehicle parking management has always been the business of council," he said.
The new company started operations on Wednesday with 150 employees.
The South African supplier of the hand-held parking equipment is tutoring the parking marshals on the use of the gadgets.
Workmen were yesterday observed marking parking bays in the western part of the central business district.
The company also charges a US$1 for an hour's parking.
The city borrowed US$1,1 million from a local bank to finance the new parking business.
A total of US$700 000 was reserved for CBD parking and the other US$400 000 was reserved for upgrading of Mbare Bus Terminus.
The company has failed to install vehicle control equipment at Mbare Bus Terminus, Market Square, Cameron Street, Angwa Street and Fourth Street Commuter ranks.