Abstract:
Worldwide, the private sector has actively participated in delivering transport infrastructure
assets such as urban rail transit (URT) networks and systems. Typical Private Participation
in Infrastructure (PPI) approaches used to deliver URTs have been Public-Private
Partnership (PPP) agreements or variants thereof. Generally, however, PPPs have been
unable to provide governments with value for money and concessionaires with sufficient
operating revenues. The corollary, in this case, has meant that governments have been
drawn to consider alternative forms of financing to procure and support the economic
viability of their URTs. Land value capture (LVC) has been identified as a potential finance
mechanism that can be integrated with a PPP to ensure its economic success.
This session will be divided into four parts. First, we will provide a review of URT PPPs
that utilise LVC across worldwide projects. Then we will examine the success and failure
of URTs procured using PPPs with LVC based on the experiences of Hong Kong’s Mass
Transit Rail and Delhi Airport Metro Express. Drawing upon these two cases and current
literature, we will propose a conceptual model that integrates land use and finance to
assist policymakers with the procurement of their commuter rail. In the end, we will discuss
the implication of our developed model for procurement policy and its potential application
in the context of South Africa.
