Investment in infrastructure three pillars of city resilience

Example 1: LVC helps the city of Ahmedabad to open up the riverfront
INVESTMENT IN INFRASTRUCTURE
Blighted
urban riverfront

• Place for the poor to build their hutments
• Inaccessible
• No new commercial/residential development

$17 mln of upfront public investment

• 22km enforced promenade
• Slums resettlement
• Sewage upgrade
• Environmental rehab
• Land reclamation

Well serviced, walkable waterfront

• River access open to public
• 202 ha of land has been made available for modern development
• reduce erosion and exposure of the city to flood risk

30 ha of reclaimed land for sale

• 15% of sale proceeds recovers the cost of entire upfront public investment

7-10 years
Example 2: LVC helps regenerate Rio de Janeiro’s historic area near Bay
INVESTMENT IN INFRASTRUCTURE
Underused industrial lands in the historic core of Rio

• Low-density uses inherited from cargo port
• Poor accessibility
• Contaminated waters
• Unpleasant views

New density and height regulations adopted

• City adopted new zoning to allow construction of additional density
• Structured SPV to sell extra development rights

City earns $1.8 bln from sale of rights to build extra density

• Proceeds are directed to hard infrastructure improvements
• More build-up is facilitated
• Further sale of development rights

Regenerated modern mixed-use community

• The area becomes home to 70,000 new mixed-income residents in a well-serviced, accessible community with nice urban views

3-4 years to sale of a first tranche of development rights, 15 years to fully build out
Investments can include hard infrastructure, slum upgrading, environmental remediation
Improved infrastructure translates into higher desirability and increased development potential of land
Value captured
as a fraction of imputed
private developer’s profit.

• Can be captured either upfront or post project completion
• Can be in monetary terms or as in-kind contribution of proportionate value

Captured value contributes to recover costs of infrastructure upgrades and/or generates funds for additional infrastructure investment