ECONOMICS UNIQUENESS

FINANCIAL MECHANISMS FOR HISTORIC CITY ■ 229
for natural heritage brownfi elds is especially evident in Latin American countries.
Moreover, the short investment horizon was also one of the problems with
brownfi eld concessions in Latin America during the 1990s (Sirtaine et al. 2004).
Investors should begin to expect profi ts only aft er 10 years from the start of operating
the project. Th us, for local investors cash fl ow appears to be the main reason
driving the renegotiation—or even the cancellation of—brownfi eld contracts.
It is also critical that there be close cooperation among the diff erent partners
involved in PPP arrangements for urban brownfi eld projects. It is particularly
important to involve and consult with the local residents of the project area. In
the case of the regeneration of solid waste disposal sites in Istanbul, Turkey, a
main obstacle to the fi nancial success of the project was the lack of consultation
with the local resident population, who had strong negative feelings attached to
these sites. Th e role of public partners can be vital in these cases to ensure that
brownfi eld projects generate positive feedback, especially from those who will
mainly benefi t from the urban investment—namely, those households living at
or near the site.
Case Study: Sumidouro Project in São Paulo, Brazil
Th e Sumidouro project, located in the district of Pinheiros, São Paulo, Brazil, is
an example of a successful brownfi eld project with a cultural heritage focus. Th e
project, entitled Praça Victor Civita, has been fi nanced through a public-private
partnership as the main instrument. Th e project concept, developed according
to the schema presented in fi gure 8.6, aimed to do environmental remediation
work in the old central waste incinerator Sumidouro in order to build a recreational
area for cultural and educational activities. Th e project covers 13,648
meters of land that had been contaminated by heavy metals found in the soil
and ground water. In addition, dioxins and furanes were found in the main
building. Private investors fi nanced the remediation activities and the creation
of a new public park, called Victor Civita Square, as well as an educational and
cultural center (Motta 2006).
Figure 8.5 indicates the stakeholders that participated in the project. Th e PPP
was established between the municipality of São Paulo and the private investors.
Other public stakeholders who played a relevant role in the project were the
municipal environmental department, in charge of the elaboration and monitoring
of the remediation and revitalization plans, and the state environmental
agency (CETESB), in charge of licensing, establishing remedial goals and supporting
investigation, logistics, and technology developments. GTZ, the German
development agency, acted as facilitator and technical consultant for the soil and
groundwater cleanup.