Page 52 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

Cash-negative projects, however, also served as a necessary base for building the cash-positive
developments. This means that, for example, in order to have an attractive office space building, it
is vital to have waste collection networks in place and, in order for retail shops to generate profit, it
is necessary to have roads in place, connecting housing where people live to where they do their
shopping.

Developing institutional innovation inspired by multilateral dialogue (Recommendation 7)

To develop Parque das Nações, the updated legislative framework had to be approved by
Parliament. The biggest change was to give the development company the authority to manage the
zoning and permissions required to transform the land in a way that would be attractive for foreign
investment. Due to consultations, where investors were seen as key players, it was discovered that
existing rules for the use of land were not fit to transform the area. Local government took this
input on board and adjusted the legislation to be more fit to attract the needed investment. As a
result, institutional innovation was applied, generating improved legislation.

Using a multi-level approach for developing policies and transformational projects (Recommendation 9)

Within Parque das Nações, groups of projects were developed under the mobility investment
programme, including roads, metro, railway station, and parking lots. The mobility, utilities and
social infrastructure programmes were part of the urban development policy defined for the area.
As the new city created by the projects evolved, more new products were considered necessary.
In this case, several five-star hotels were developed. In order to accommodate this evolved vision,
urban policy was adapted, and new projects were developed.

Creating a sustainable urban development cycle (Recommendation 10)

The city of Lisbon, as part of the Parque das Nações project, generated this sustainable development
cycle. The starting point was a clear vision about the future, aligned with the sustainable development
framework. There were many projects for investors to choose from, all different sizes and different
sectors, but all of them were part of the same programme. There was a clear opportunity for public
and private investment. The saw curve demonstrated that the public sector was investing on the
cash-negative projects with capital raised from the cash-positive projects. The projects generated a
positive business environment, encouraging companies to move to the city, leading to the creation
of new jobs. For all these reasons, the programme was perceived as an example of a project focused
on people, planet and prosperity, with clear rules, and which was open to multiple and diverse
types of partnerships. A virtuous, sustainable urban development cycle was created.

34 U4SSC: Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects