Management Framework for Land Based Financing in Egyptian New Cities based on the Chinese Model

Abstract

Land based financing is a financing approach in which it can provide the needed financing to allurban infrastructure without depending on the government as the main economic funder or the low-income groups. This financing approach is based on obtaining revenues from private developers 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 which creates a sustainable financing mechanism for infrastructure provision and for urban development and expansion. However, the usage of this financing approach in some Egyptian new cities had exposed the government to many negative financial instability risks due to the current used policies which have caused to hinge and disturb the national urban development strategies. On the other hand, many international cases have used this financing approach effectively and achieved great outcomes on many levels; economic, social, sustainability, and urban development. One of these pioneering cases and considers have the longest experience in using this mechanism is China. The main objective of this research is to generate and deduce a management framework for this financing approach in Egyptian new cities based on the Chinese model. Accordingly, the research methodology includes literature review and qualitative analyses of some international pioneering cases in China in an attempt to deduce a set of criteria that eliminates any potential risks, neutralize the occurred risks, and unlock the full potentialities of this financing approach in Egyptian new cities.In conclusion, using land based financing effectively and with the right and suitable policies would achieve the governmental socio-economic, urban development, and sustainability objectives while keeps the negative impacts at their lowest levels.