Guangzhou International Award for Urban Innovation Application Form 2012
Total Page：16
File Type：pdf, Size：1020Kb
Guangzhou International Award for Urban Innovation Application Form 2012 Please return the Application Form to the Guangzhou Award Secretariat at [email protected] by 30 September 2012. A. Profile of the Initiative Name of City/Community: Ahmedabad Name of Province/State: Gujarat Name of Country/Region: India Africa (Sub-Saharan) Asia and Pacific √ Geographic Region (Please East and Central Europe select and tick one): North Africa and Middle East North America Latin America & Caribbean Title, name and position of person(s) submitting: 1. Basic City Data: Population size: 6.5 million Surface Area: 466 sq.km Population Density: 11948 /sq.km GDP : 72 billion USD Other: (please specify) B. Background Information: Title of Slogan of the Initiative (25 words max.): “Sabarmati Riverfront Development Project” Start date of Initiative: Dec 2004 (In May 1997, the Ahmedabad Municipal Corporation (AMC) established the Sabarmati River Front Development Corporation Limited (SRFDCL) to develop the riverfront. Construction activity commenced in Dec 2004 after obtaining all the clearances from the Government) Tentative end date of initiative Project development work is at the verge of completion. However, SRFDCL will be responsible for the Development of Control in the reclaimed area to create and maintain the urban neighborhood as an extended arm of the City Government Thematic area(s): Urban Infrastructure 1 C. Summary of the origins of the initiative: Describe how the initiative came about and what challenges or issues of sustainable development it is meant to address using the following lead questions as your guide (350 words max). 1. Describe briefly the reason(s) for undertaking initiative including challenge(s) or issues confronting the city/region/community. Include where relevant number of people, enterprises or institutions affected. Since time immemorial, river valleys have been the cradle of civilization and many great cities have been developed around the banks of great rivers. Rivers lend a strong identity to cities and the quality of riverfront development is very often a strong indicator of how developed a city is in terms of its quality of life and urban infrastructure. Riverfront development is also one of the main methods of revitalizing a city and has been successfully implemented in Western countries. The city of Ahmedabad, located on the banks of the river Sabarmati, is the largest city in the State of Gujarat. The Sabarmati River has served as Gujarat's lifeline for ages. It has been a major source for drinking water and non- formal recreation for the city of Ahmedabad. Why River Front Development? Since long time the Sabarmati River has been subjected to severe pressure and abuse owing to the fast pace of urban and industrial growth of the city. The Sabarmati is a major source of water for the city due to the regular release of water from the Dharoi Dam and subsequently from Narmada Canal at upstream. However, for years, the riverfront remained neglected. It's potential to provide city level social infrastructure and recreation facilities was untapped. Sewage contaminated the storm water out-falls and the dumping of industrial waste posed a major health and environmental hazard in the river. The slums located along the riverbed have always been a major impediment to efficient management of monsoon floods in the river. It has long been acknowledged that appropriate development of the riverfront can tum the river into a major asset, which can improve the quality of environment & life in Ahmedabad, improve the efficiency of its infrastructure, conserve the places of heritage importance, and create an opportunity for recreation / hospitality industry in the city. In May 1997, the Ahmedabad Municipal Corporation (AMC) established the Sabarmati River Front Development Corporation Limited (SRFDCL) to develop the riverfront. In 2004, the land of riverbed (162.80 ha) was transferred to AMC for execution of Riverfront Project through SRFDCL and thereafter an action plan has been prepared to expedite the execution of the project, which is being regularly monitored by the State Government. The total estimated 2 cost of the project is INR 11.51 billion. • Perennial Water Body (11 Km long) The ambitious project involves creating embankments and developing a 11 km stretch of river front along both sides of the river, from upstream of Subhash Bridge to Vasna Barrage. This stretch of 11 Km of Sabarmati River would become a perennial water body after completion of the River Front Development Project. • Land Use of reclaimed Land (202 ha) The main considerations in allocating land uses were: existing land uses along the river; extent, location and configuration of reclaimed land available; potential for development; the structural road network and form of the city; bridges proposed in the Ahmedabad Development Plan and, the possibility of providing adequate infrastructure. 2. Describe the goals of the initiative in terms of desired change or outcome and timeframe for achieving the change or outcome (for example, change in policy, strategy, business model, technology, means of implementation, financing arrangements, measuring and evaluating, etc.) Objectives of the SRFD Project are as follows: • To lead the orderly development of the urban area of the city by developing the unused riverfront of Sabarmati River for creation of basic infrastructure facilities like roads, bridges, sewerage drainage and water supply. • To beautify the large stretch of riverfront of almost 20 kilometres by providing gardens, promenades, permanent open recreation areas etc. • To beautify the city and have cleaner environment as well as to make the city enjoyable to love in. To make it possible for the citizens to use the river banks and enjoy the entertainments on its sides. • To eliminate flood hazard & to relocate the slum dwellers into a proper pakka housing & to create the city river entertainment complexes. • To develop recreational facility, walkways, promenades on both the bank of the river. • To develop residential and commercial plots of land by reclaiming the land of the riverbed. • To explore the possibility of providing quick transportation system like Mass Rapid Transit System (MRTS), Bus Rapid Transit System (BRTS) by utilizing the riverbed land. • To develop the river and surrounding area as a tourist spot by creating various entertainment, recreational and amusement facilities. 3. List the parties and partners to the initiative (specify public, private, non-governmental, 3 individual, etc.) and who is or was the leading partner(s) and the role they each played. • Lead Planning & Implement Agency o AMC: Ahmedabad Municipal Corporation is the lead implementing agency of the project. SRFDCL is special purpose vehicle created by AMC on a Build Maintain, Operate and Transfer (BMOT) basis. • Project Support o Ahmedabad Urban Development Authority (AUDA) o Urban Development & Urban Housing Department, Government Of Gujarat o Housing and Development Corporation (HUDCO) 4. Describe the resources used for implementing the initiative including funding/financing strategy or arrangements and Include any significant contributions that are not in cash, for example, in human, technical or managerial resources. The funding strategy was required to mitigate the timing difference between revenue and funding requirement for project construction. The following strategy was used. • Equity Capital - The AMC has committed to provide capital to SRFDCL. • Loan Funds - Due to the timing of expenditures (over a 5 year period) and revenues (over a 10 to 12 year period), it was necessary to borrow funds to cover the difference between the returns available and the cash flow requirements of the project. Available alternative were explored including commercial bank loans, special infrastructure loan funds and direct borrowing from the capital market through a special bond issue. Finally the funding was arranged in an innovative manner. AMC took responsibility for providing funds for repayment of the loan till such time when cash flows would become available. Thus the loan was tied up with HUDCO. The repayment was done by AMC but routed through SRFDCL since SRFDCL is the borrower. Initially such payments made by AMC to SRFDCL are being treated as equity contribution by AMC. Later contributions are considered to be junior loan from AMC. Thus a mechanism was established for regular transfer of equity funds from AMC to SRFDCL. • Presently, the total project cost of Rs. 1152 crore for Phase I has been divided into three stages. The first stage of Rs 240 crore was financed through equity contributions from AMC (equity and preference shares) and a HUDCO loan of Rs 200 crore. • Stage II of Phase I of Rs 398 crore is under construction. This phase would be financed through equity contributions Rs 48 crore from AMC and Rs 350 crore term loan from HUDCO. • Financing for Stage III of Phase I and Phase II would be tied up through a mix of AMC contributions, revenue proceeds and term loan as required. If properly managed, the proceeds from the sale of land created by the project will easily cover the full cost of the project including the cost of interest paid on construction period loans and repayment of equity investments. Owing to the boom in property prices, even 14% of the land available for development would be sufficient to recover the investment made in the project. 4 Present Financial Status SRFD has commenced the implementation of the project on both east and west banks of the river between up Stream of Railway Bridge and Vasna barrage by reclaiming the riverbed. A total of Rs 740 Crore, representing Stage I of Phase of the project, have been already spent on the construction in the project. D. Summary of the innovation for the initiative: Describe the innovation for the initiative using the following lead questions as a guide (350 words max). 1. Describe whether the initiative should be considered evolutionary or revolutionary. Evolutionary would imply that innovation evolved over time based on lessons learned from experience and that the changes or outcomes are cumulative.