Investment in infrastructure three pillars of city resilience

Value Capture Component
Project-underlying infrastructure has primarily been financed through CEPACs, following adoption of a new law to substantially increase density and height limitations set in the Porto Maravilha area.
Porto Maravilha Urban Waterfront Revitalization, Rio de Janeiro, Brazil
More than 4 million sq m of additional density was sold via CEPACs during 2011-2013 generating US$1.8 billion in upfront infrastructure funding (the initial purchaser of a CEPACs was a state-owned financial bank CEF, which passes CEPACs through, selling them at a profit, to private real estate developers as demand arises)
The area comprises 1,250 acres and is home to 35,000 residents (subject to increase to 100,000 post regeneration). The program commenced in 2009, with full recycling of approved additional density anticipated by 2025.
Land Pooling / Land Readjustment: Overview
INVESTMENT IN INFRASTRUCTURE
DESCRIPTION

• A participatory process in which land owners (or occupants) voluntarily contribute a certain percentage of their land for infrastructure development and for sale to cover part of project cost. In return, each land owner receives a serviced plot of smaller area but with higher value within the same neighborhood
• LP/R provides an alternative to expropriation, with minimal displacement
• Many countries used LP/R to facilitate peri-urbanization, urban regeneration including slum upgrading, and post-disaster and post-conflict reconstruction

KEY REQUIREMENTS / IMPLEMENTATION FACTORS

• Generally requires consent of supermajority of land owners to approve the project
• Appropriate legal framework that empowers local authority to legally take land from dissenting landowners when supermajority agrees
• More feasible in areas with high land value increase potential after project completes
• Shall be guided by a city’s mater plan
• Quality of property records and cadaster map is important to expedite implementation