A Guide for Sustainable Urban Development of the 21st Century

Shanghai Manual – A Guide for Sustainable Urban Development in the 21st CenturyBilbao Ría 2000 is a not-for-profit publicly sponsored partnership that operates like a privatesector company. The agency is based on a complex model involving all levels of government.This integrated model was necessary because decision-making is located at differentadministrative levels, i.e., urban planning by local government, fiscal power by provincialgovernment, and land ownership often by central government authorities. Shareholders include aland management company (SEPES), the Port Authority, two railway companies (FEVE &RENFE), the Basque government, the Provincial government, the City of Bilbao, and the City ofBarakaldo. Taking control of the vacant land was essential for redevelopment. Land owned bysome of the shareholders was brought into the company’s portfolio.While start-up funding came from central and regional governments and the European Union,Bilbao Ría 2000 is now self-financing in its activities. This is done through the revaluation ofland as a result of the rezoning of its land-use designation and the subsequent sale to developers.Profits must be re-invested in the public company and in urban regeneration activities. Thefinancial autonomy of its operations is considered highly significant for the success of BilbaoRía. Owing to its mandate, its access to land, and its financial autonomy, it has become the majorplanning and urban regeneration entity in Bilbao.By investing a total of €560 million between 1997 and 2006, Bilbao Ria was able to successfullyregenerate the following designated ‘opportunity areas’:• Abandodoibarra: This was formerly brownfield land occupied by harbour and railwayinfrastructure on the riverfront in central locations. This area was redeveloped to create theattractive new urban heart of Bilbao.• Zorrozaure: This was a peninsula occupied by mixed, mostly lower-value, harbour, industrialand residential buildings and activities. The project restructured land use here and connected it tothe planned future extension of Abandoibarra.• Ametzola/Eskurtze: This area south of central Bilbao was dominated by dense residentialdevelopments. The project removed much of the old physical infrastructure that divided thisarea, such as deep railway cuttings.• Miribilla and Morro: These abandoned mining areas on the hilly slopes south east of centralBilbao were reclaimed and became the site of new housing construction.The private sector was initially very cautious about investing in ‘opportunity areas’ of Bilbao.Public-sector investment was necessary to create confidence in the sites and in Bilbao as awhole. To assure the business community, the provincial government planned to relocate to abusiness tower in a zone to be redeveloped.17