Threats and root causes of using publicly-owned lands as assets for urban infrastructure financing

oleh: Mostafa El-Nagdy, Hossam El-borombaly, Laila Khodeir

Format: Article
Diterbitkan: Elsevier 2018-12-01

Deskripsi

Using publicly-owned lands as assets for urban infrastructure financing considers one of the most ambitious and encouraged approaches to finance urban infrastructure since this approach would provide the needed financing to different types of infrastructure without depending on the government or on the low-income groups. This financing approach is based on obtaining revenues from private developer’s and high-end land owners through publicly-owned land selling or leasing to capture the increment in land value as a result of public investment in infrastructure. However, the usage of this financing approach in the Egyptian new cities had and will expose the government to many negative financial instability risks due to the current used policies. The main objective on this research is to explore, describe, and identify all the threats of using publicly-owned lands as an asset for urban infrastructure financing and to deduce and conclude their root causes. Accordingly, the research methodology includes literature review and qualitative analyses of some local and international failure cases in an attempt to deduce these threats and their root causes. On conclusion, using publicly-owned lands as assets for infrastructure financing ineffectively carries huge socio-economic and political negative risks for government, business and the community. Keywords: Urban infrastructure, Land value capture, Land based financing, Negative risks, Root causes