The QEII Medical Centre (QEIIMC) private car park deal, built alongside the Perth Children’s Hospital development, has been slammed in the Special Inquiry into Government Projects and Programs, which found there was no robust risk assessment.
The 300-bay car park at the new Perth Children’s Hospital continues to sit empty and has already cost the State $20.5 million. The car park was not supposed to create an ongoing liability to the State.
As a result of the contract, the State Government has been forced to pay millions of dollars in compensation to the private operator, Capella Parking.
The current contract means the private operator must be compensated whether car bays are being used or not.
Another red flag raised in the Inquiry found the agreement provided limited flexibility to adjust parking rates without having to fork out thousands of dollars in taxpayers’ money to Capella. The Special Inquiry into Government Projects and Programs looked into major projects undertaken between 2008 and 2017.
The contract for the QEIIMC hospital car park, which is managed by Wilson and operated by Capella Parking, failed to meet its key objective and has become an ongoing liability to the State, already costing $20.5 million.
A review of the contractual framework of the current agreement with Capella will also be conducted as recommended in the Special Inquiry.
Image: Department of Health