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Proposals for Implementing Transit-Oriented Development in Lima

June 23, 2023 por Claudia Amico Tudela, - Jason Anthony Hobbs - Borja Lopez - Sebastian Lew - Editor: Daniel Peciña-Lopez 1 Comment

Este artículo está también disponible en / This post is also available in: Spanish


First steps for the implementation of land management instruments in Peru

The sustainable development of cities in Latin America and the Caribbean (LAC) has a base on Transit-Oriented Development (TOD). Still don’t know what TOD is? Don’t worry, in this blog we explain the concept, and show you how in Peru, with the support of the IDB, the first steps are being taken to start putting it into practice. Read on and find out all the details!  

What is TOD and why is it necessary to carry out land readjustments?

TOD projects integrate urban planning and mobility to promote compact neighborhoods around mass public transportation. They are projects that build quality public spaces, with healthy and attractive areas for living and working.

In order to implement TOD in urban areas that have already been built, it is common to carry out a land readjustment in that part of the city. Land readjustment refers to real estate integration processes, where property owners contribute their land to make way for new projects that involve the reconfiguration of an urban area.

Which are the implications for land readjustment in the Peruvian context?

In June 2021, the Sustainable Urban Development Law (DUS Law) was approved, which defines instruments for land readjustment, regulation and urban financing. In this way, the country is now aligned with the objectives of the new urban agenda that promote “inclusive sharing of the value generated by sustainable urban development“.

Given the extensive land occupation model that prevails in all Peruvian cities, access to good locations for social housing projects or the development of facilities and public space becomes more costly and complex. The DUS Law proposes the readjustment of land, with which greater heights or land use can be offered (“benefits”), and part of the profitability of these real estate operations can be captured by the public sector to finance part of the requirements of services, public spaces and equipment of the urban operation (“burdens”).

How will land readjustment take place in Peru?

The “Sustainable Cities” project for the Metropolitan Area of Lima and Callao implemented by the Ministry of Environment, with funding from the Global Environment Facility (GEF), institutional support from the IDB as implementing agency, and WWF as executing agency, proposes the regeneration of the surroundings of the Naranjal station of the Bus Rapid Transit (‘Metropolitano’) system in northern Lima. This regeneration area contains large areas of industrial use and is located between the future Metro Line 3 station and the next cable car station.

Following TOD principles, the aim is to concentrate investment in areas with greater potential for densification, such as this one, to generate high quality urban spaces with an appropriate mix of uses and a pedestrian – design orientation. This transformation implies the total restructuring of the existing urban fabric and property structure, changes in zoning regulations and the creation of new roads, public spaces and facilities. This requires the approval of specific regulatory planning instruments that will determine uses and parameters, and the definition of the Urban Management Units (UGU) that will establish the charges and benefits among the owners.

Left image: Current state of the area | Right image: Urban architectural modeling of the development of the intervention area.

What are the key steps to achieve the process?

In the case of Lima, the proposal and regulation of the Specific Plan (normative instrument) for the urban regeneration area which includes 22 UGUs, must be approved by the Municipal Council of the Metropolitan Municipality of Lima. These units have been formulated so that they can be executed independently, where the consulting firm that developed the proposal (IDOM) made sure to balance the profitability of each unit. At the same time, the design takes advantage of the existing property structure to facilitate the execution and the role that the land owners will play.

Image: Delimitation of urban development management units (UGU) on the existing property structure

The Land Readjustment will give rise to a land redevelopment process through an urban habilitation that defines the future plots and establishes the urbanization costs (new roads, urban services, green areas, etc.) for the developments. Likewise, the benefits for the owners are determined, obtained from the value of the new uses to be implemented (housing, commercial areas, etc.), which must be higher than the charges (redevelopment costs, real estate development costs and construction costs of the new uses).

As most of the municipalities do not have instruments to carry out an effective property valuation, the Residual Land Value methodology has been proposed, which is based on commercial values from a market study, which will be fundamental for the municipalities to adequately capture the generated surplus value.  The DUS law establishes that they are entitled to receive between 30 to 50% of what is generated, which can be granted in cash or in plots. The transfer of plots represents an opportunity for a municipal Public Land Operator (a figure provided for in the DUS Law but still non-existent in Peru) to enter the market and make this land available for the production of low-income housing.

As part of the Land Readjustment Project, mechanisms have been established for the creation of an Urban Development Trust, where it would be expected that the municipal Public Land Operator could purchase the land of those owners who don’t wish to be part of the real estate operation.

Given that in Peru the urban development function is not considered to be of public utility (and, therefore, does not allow for expropriation), the role of the municipalities as promoters of urban development will be fundamental in convincing property owners of the benefits of exploiting their property.

What are the lessons learned from this experience to promote urban regeneration and TOD projects in the region?

  1. It is fundamental for local governments to understand the dynamics of the real estate market and engage with the private sector.
  2. The Public Land Operator is an important figure to guarantee a secure development of the project, acquire land and ensure that the social functions behind real estate operations are fulfilled.
  3. The transformation of the uses and structure of the property, as well as the management of social demands are complex and very long-term processes that require sustained governance over time, active participation of the community to ensure social validation and constant support from the authorities.
  4. The development of a “pilot” sector (tactical urban planning or a first mobility improvement project) is important to trigger the interest of owners and developers.

If you are interested in learning more about TOD in LAC, we recommend that you do not miss the following IDB publications:


Filed Under: Urban economics Tagged With: transit oriented development, urban development, urban regeneration

Claudia Amico Tudela,

Claudia Amico has a bachelor's and master's degree in architecture from the University of Sheffield (United Kingdom) and a master's degree in Environmental Urban Processes from the University of EAFIT (Colombia). She is a professor at the PUCP and a researcher at CONURB - PUCP. He has directed integral urban projects and neighborhood transformation through participation, the intervention of public spaces and the landscape approach. He has led processes of territorial planning of Amazonian, rural and urban contexts in various cities of Colombia and Peru, such as the Metropolitan Development Plan of Callao to 2040 for the Ministry of Housing, Construction and Sanitation, which he was in charge of until joining the IDB.

Jason Anthony Hobbs

Jason Hobbs is an urban planner and operational specialist with 20 years of experience working on issues of sustainable development in the Latin America and Caribbean Region. As a Housing and Urban Development Senior Specialist, he advises policy makers and city leaders on urban issues relating to resilient infrastructure, mobility, rehabilitation, upgrading, regeneration and public spaces. Prior to joining the IDB, he worked with the World Bank, non-profits and the public sector on the design and implementation of operations, monitoring and evaluation initiatives, and provision of technical and operational support for projects, country assistance strategies and policy dialogue. An advocate of placemaking and human-scale cities, he is fluent in Portuguese, Spanish and English.

Borja Lopez

Borja López Roca es Arquitecto (con grado de master) y diplomado en Planeamiento y Desarrollo Urbanístico por la Universidad de Navarra (España). Es miembro del Colegio Oficial de Arquitectos Vasco – Navarro (COAVN) y de la Agrupación de Arquitectos Urbanistas del COAVN. Cuenta con casi 20 años de experiencia y ha colaborado, desde su inicio profesional, con el equipo de Ciudad y Territorio de IDOM, especializándose en la redacción de figuras de planeamiento y ordenación del territorio. Cuenta con trabajos desarrollados en diferentes países de LATAM (México, Honduras, Guatemala, El Salvador, Perú, Bolivia, Panamá), Europa (España y Portugal), África (Angola) y Asia (Qatar); así como en diversas vertientes de la planificación urbana y territorial: conservación patrimonial, paisaje, desarrollo socioeconómico, diseño urbano, regeneración urbana, valoración económico-financiera o conservación ambiental. Además, en práctica profesional ha desarrollado las diferentes escalas de la planificación: desde la planificación estratégica y territorial de regiones a la ejecución de las acciones urbanísticas.

Sebastian Lew

Specialist in the Housing and Urban Development Division of the IDB. From the Bank's office in Peru, he works on programs for the recovery of historic centers, urban planning and regeneration, and housing. Previously, he was Director of the Cities Program at CIPPEC; Coordinator of the Patagonia Project at the Cabinet of Ministers of Argentina; and Consultant for the Emerging and Sustainable Cities Initiative (ICES), in charge of projects in Bolivia, Paraguay and Chile. He holds a BA in Political Science from the University of Buenos Aires (1999) and an MA in International Development from Warwick University (2006). He specialized in Urban Planning and Policy at the University of Illinois at Chicago (2010-2012) and was a Chevening (2005), FURP (2005) and Fulbright (2010) fellow.

Editor: Daniel Peciña-Lopez

Daniel Peciña-Lopez is a specialist in international affairs, external relations and communication. He has more than 10 years of professional experience in diplomatic delegations, and international organizations in cities such as Washington DC, New York, Chicago, Madrid, Mexico City and Hong Kong, among others. Daniel is Master of International Affairs from Columbia University, Master of Science from the University of Oxford Brookes and Licenciado from Universidad Complutense de Madrid. In 2010 Daniel received the First National Award for Excellence in Academic Performance, from the Ministry of Education (Government of Spain) for being the university level student with the highest average GPA score in the country.

Reader Interactions

Comments

  1. HORACIO A NÚÑEZ says

    July 3, 2023 at 7:07 pm

    Una interesante propuesta de intervención urbanística, acorde con los procesos actuales de transferencia de funciones a las municipalidades distritales; dado que, como señala el articulo: en Perú la función de desarrollo urbano no se considera de utilidad pública (y, por lo tanto, no permite la expropiación)…¿No sería mejor reconsiderar éste aspecto dada su trascendencia estructural?…
    #urbanismo #planificación #gobernanza #ciudad #accesibilidad #transporte

    Reply

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