Page 55 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

PPP Unit and has created multiple SPVs that were opened for the participation of private sector
developers and investors.

Sustainable Development Goals impacts

SDG 8: The project created productive and decent employment.

SDG 11: Integrated urban planning and transformation from a polluted to modern estate increased
city liveability and sustainability.

SDG 17: Partnership between local and national governments, financial institutions and real estate
developers.

People-first elements

• Maximizing economic potential: The urban development project transformed an industrial and
polluted area into a sustainable city district with a new central business district and multiple urban
products: housing retail, services and public social infrastructure. The PPP project demonstrated
the ability to leverage public urban design, public land and public permit management, while
attracting private equity and debt.
• Increased opportunities for employment: 25 000 new residents relocated to the city and created
18 000 new permanent jobs. On top of attracting people back to the city of Lisbon, the project
focused on improving the quality of life of communities, by adding education, health, cultural,
sports infrastructure and services, and creating new decent jobs, retail and service facilities.
• Social benefits: The project has created impressive leisure facilities along the rivers of Lisbon
where residents and visitors can jog, bike or rollerblade. The construction of a modern marina
permits additional recreational activities like water sports and creates space for nautical sport
events.

• Use of ICTs to make the district more pedestrian friendly: Traffic lights were installed to slow
down traffic, encouraging cars to choose routes away from the district. This speed control
created a safe environment for pedestrians that contributed to quality of life.

Financial information

The total PPP project cost was USD 232 million, comprising USD 186 million debt and USD 46 million
equity (USD 23 million from the public partners and USD 23 million from the private partners). An
SPV was created, and equity shares were sold to private developers. Business plans were developed
by the SPV partners, and debt was raised jointly. To raise debt, the partners used the mortgage of
the land, business plans with the estimated project cost and shareholders’ IRR to guarantee debt
and optimize interest rates.

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