Innovative and Efficient Management and Financing for Large Urban Infrastructure Projects

(sponsored by Madrid City Council)

5 May 2008 (4:30 p.m. - 6:30 p.m.)

Transport infrastructure in many large cities nowadays faces the threat of collapse. Increase in population and in nubers of vehicles affect existing highways and collective transport systems, turning them obsolete and inefficient. Furthermore, the need for renewing large urban infrastructure is usually constrained by scarce public financial resources at the local level and accessing credit is a challenge.

In Madrid, an important component of the Urban Renewal Program led by Mayor Alberto Ruiz Gallardón is the "Madrid Calle-30 Project", which focuses on traffic mobility and environmental protection. Madrid has just undertaken a major transformation of one of its oldest roads, the M-30 ring road, which had become too small and slow to support the traffic flow around the city. This huge construction renewal project, which was completed in only 27 months at a cost of 4 billion euros, has buried a large part of the old road and has re-surfaced the once lost Manzanares river, while at the same time improving traffic conditions.

An innovative and creative public private financing scheme made this project possible and affordable for the Madrid City Council. Large local construction companies, financial institutions, and the Madrid City Council created this partnership that can serve as a good example of best practice for developing Asian cities.