Archive | 2019
Land Value Capture as a New Sustainable Financing Mechanism for Public Transit Development in New Cities: Borg El-Arab New City as a Case Study
Abstract
The public transit financing methods in Egypt are mostly dependent on governmental entities, which increase national economic burdens, without any correspondent impact on the quality of service provided nor their provision. An alternative way of financing must be integrated without an increase in fares, and general budget, or dependence on foreign loans, and grants. This funding problem has further become a spectacular challenge, to link the new cities with existing ones. From another perspective, public transit eventually poses economic influences on land values surrounding their context that increase incrementally. Yet, this increment is commonly captured by landowners and private developers, and can be rationally used to cover the initial public transit costs if the construction phase which is preceded by a pre-planned framework to capture this increment in favor of the community through related governmental authorities and decision makers. This mechanism is referred to as “land value capture: LVC.”