ECONOMICS UNIQUENESS

GOVERNANCE IN HISTORIC CITY CORE REGENERATION PROJECTS ■ 171
Over a period of 15 years, the ICB invested nearly US$46 million in the
physical rehabilitation of 35 city blocks containing almost 600 properties (see
table 6.4). Th e ICB selected the blocks based on the criteria of level of decay,
available resources, and location in the historic city core. Occupants, mostly lowincome
households, were induced to seek accommodations elsewhere in the city
with monetary compensations, or were temporarily relocated if they were not
willing to leave. Th e ICB developed the projects following the traditional process
described in fi gure 6.1 and undertook all the rehabilitation work on the private
properties and public spaces. Th e renovated buildings were returned to the owners
with the obligation that they repay part of the cost either in cash or by letting
the ICB rent out part of the properties for an agreed period of time.
Th e top-down approach adopted in Salvador had several consequences:
• Led to a uniform approach to rehabilitation that is oft en contested as inaccurate
by conservationists outside the ICB;
• Promoted the historic city core as a place for tourism and recreation to the
detriment of all other residential and community functions;
• Did not make space available for privately fi nanced projects;
• Alienated the municipal government, leaving the ICB with the responsibility
of maintaining all public spaces and policing the area; and
• Displaced original residents who could not return to the area due to the higher
rents.
Th e amount of funds invested per year varied widely, in tune with the capacity
of the ICB to secure transfers from the state government, jeopardizing project
TABLE 6.4
Salvador State Government Investments in the Preservation
Management of the Historic City Core
Stages
Implementation
period
Number of
city blocks
Number of
properties
Investment contracted
amounts (in US$)
Stage 1 1992–93 4 89 11,221,701
Stage 2 1992–93 2 47 2,805,811
Stage 3 1992–94 3 58 3,010,136
Stage 4 1992–94 8 183 12,512,766
Stage 5 1996 2 48 10,245,607
Stage 6 1997–2006 6* 83 7,103,112
Stage 7 1999–Ongoing 10 88 8,624,614
Total 35 596 55,523,750
Source: Mendes Zancheti and Gabriel 2011.
* Number of city blocks partially rehabilitated.