Investment in infrastructure three pillars of city resilience

Value Capture Component
The project is self-financed – cash for recovery of capital expenditure and operating costs comes from sales of reclaimed and serviced land for commercial development
Completion of major infrastructural components have already led to increased land values, thus reducing the amount of land that needs to be transacted for servicing the loans.
Overall the amount invested has been recovered from sales of less than 15% of improved land.
Sabarmati Riverfront Upgrade, Ahmedabad, India
SPV established to manage initial investment in riverfront upgrade and subsequent land sales to the private sector.
Leveraging Public Assests: Sampled Project 1
INVESTMENT IN INFRASTRUCTURE
Leveraging Public Assets: Sampled Project 2
INVESTMENT IN INFRASTRUCTURE
Project Description
An underground drainage detention structure serving as a flood control facility for Bonifacio Global City
Core element of an elaborate drainage system that collects rainwater from paved urban surfaces then releases it under controlled conditions
Value Capture Component
Funding infrastructure improvements with land sale proceeds post entitlement of undeveloped military lands to real estate development area
Bonifacio Global City Drainage, Manila, Philippines
Construction was financed by proceeds from the $800 million land sale following packaging of public/private interests into a development joint venture
Sale of Development Rights: Overview
INVESTMENT IN INFRASTRUCTURE
DESCRIPTION

• Generates funding for public infrastructure by selling development rights instead of rights in land (rights in land may either be already obtained, or not intended for transfer or simply come with development rights)
• Sellable development rights fall into two categories: the right to convert less productive (lower) use to a higher use, and the right to build at greater densities than normally would be allowed by existing zoning
• Sale of development rights can be organized through sale of development certificates that act as financial market derivatives (bonds) transferrable in the stock market and thus able to increase liquidity and cash generating potential of this instrument (such as CEPAC bonds in Brazil)