Public acceptance in financing urban transportation projects using the value capture concept

Abstract

The need for transportation infrastructure and services continuously increases in urban areas worldwide but at the same time the availability of public resources is shrinking. This paper refers to the potential use of alternative financing strategies for transportation infrastructure, which are based on the Value Capture Finance (VCF) concept. A factor which has a significant role in the potential success or failure of VCF implementation is public acceptance. The objective of the present paper is thus to examine the potential introduction of a VCF for the financing of Thessaloniki’s metro system in Greece. More specifically, a questionnaire-based survey was conducted, focusing on the public acceptance factor. The case study is the area around a central metro station, located in the heart of the urban complex. The research presented is based on a questionnaire-based survey which took place in spring 2014 and was addressed to visitors of the area around the planned metro station. The majority of the survey’s participants consider that the urban environment is very likely to be upgraded due to the enhancement of accessibility as an effect of the new metro station. Nevertheless, the public’s enthusiasm is reduced significantly when the discussion reaches their willingness to pay in order to cover a part of the project’s construction cost.