Report on land value capture tools applicability: Development of land value capture and private investment options

The World Bank funded Can Tho Urban Development and Resilience Project (CTUDRP) is designed to increase the City’s physical, financial and social resilience to adverse hydro-meteorological events, by financing infrastructure to protect the urban core from flooding and guiding the development in higher land. The project will support the construction of an embankment along the river Can Tho and also the improvement of local tidal management and drainage systems. It will also help increase intra-city connectivity by constructing two road projects and encourage new urban development in the less flood-prone area of Cai Rang, on the opposite bank of Can Tho river. The total investment planned is USD 322 million with the World Bank funding of USD 250 million, Swiss State Secretariat for Economic Affairs (SECO) funding of USD 10 million and the city government funding of USD 62 million. The current report is the third deliverable of the assignment. The report aims at defining the land value capture strategy for Can Tho taking a broader view of land-based fiscal tools (LBFT). It differentiates the land value capture tools from the general land-based fiscal tools and also identifies the conditions under which the real estate market can effectively support the land value capture policies. Considering the macro-economic, demographic and real estate market conditions of Can Tho, the report presents the critical reforms for Can Tho that need to be implemented in the short term and also defines the land-based fiscal tools that Can Tho may implement in the future.