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Economic evaluation issues for urban renewal investment projects
Liu Zhi: Researcher at the Center for Urban Development and Land Policy, Peking University–Lincoln Institute, zliu@plc.pku.edu.cn
Implementing urban renewal strategies requires a clear and rigorous decision-making process from planning to implementation. This paper proposes an evaluation and decision-making process compatible with urban renewal investment projects compatible with the urban planning process.
For large-scale urban renewal investment projects, rigorous economic and financial assessments must be conducted to optimize project design and provide reliable and credible scientific evidence for decision-making and investment and financing.
Many urban renewal investment projects are multi-objective, involving public interests and requiring government funding. The feasibility study should define the roles and responsibilities of government and market in the project, including government financial obligations under government-private partnership (PPP).
Currently, urban renewal, as a strategy for urban spatial development in China, has been implemented nationwide. Urban renewal planning is implemented in the form of investment projects. However, a crucial step in the process from planning to project — the economic evaluation of investment projects — has not received due attention and is even completely ignored in the decision-making process, which can easily lead to inefficient or ineffective project implementation and waste of national resources. Based on China's national conditions and referencing international experience, this paper proposes how to define urban renewal investment projects and explores the processes and methods for evaluating the economic and financial feasibility of urban renewal investment projects. The goal is to establish a scientific and rigorous process to provide a scientific basis for investment decisions in urban renewal projects and to reasonably define the roles and responsibilities of the government and enterprises in urban renewal projects.
urban renewal; Investment projects; Economic assessment; Financingability; Government-Social Capital Cooperation (PPP)
Citation format: Liu Zhi. Economic Evaluation Issues of Urban Renewal Investment Projects [J]. Western Human Settlements Environment Journal, 2024, 39(1): 8-13.
Download the original text: Issues in Economic Evaluation of Urban Renewal Investment Projects.pdf
