Page 34 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

Financial information

The total size of the investment amounted to approximately USD 11.8 million (EUR 10 million) from
public finance:

• EUR 2.5 million was allotted to the facade and the roof was covered in full by the City Hall via
engagement of private businesses carrying out the renovation.

• Approximately EUR 4.8 million was allotted to renovation of the plaza covered in full by the
local, regional and national governments. The estimation comes from taking into account all
facilities and infrastructure (excluding the facade and roof).
• Approximately EU 4.5 million was devoted to the rehabilitation of the interior of the plaza,
covered initially by private homeowners. The sum assumes average rehabilitation costs
(including utilities infrastructure) of EUR 60 000 per apartment unit (71 in total). The tax reduction
system allowed for a refund of 15 per cent of total costs for the period 2015–2017 and 25 per
cent for the period 2018–2021.

Observations

• Renovation of the plaza guaranteed the safety of residents and visitors of the complex, while
also contributing to the preservation of the cultural heritage of Valencia.

• The renovation project revitalized the property, raising property value to approximately EUR
2
250 000 per 90 m apartment.
• The newly renovated plaza increases the attractiveness of the area for commercial activity
(shopping) and tourism. It also preserved existing traditional shops and small businesses.
• The public initiative allowed for greater participation of public institutions in the renovation
process.

Figure 5: Intervention in the Plaza Redonda in Valencia city centre (Spain)

Before: After:

22 Compendium of practices on innovative financing for SSC projects | January 2023