Unlocking the Power
Transforming Land Growth into Public Progress.
Value Capture Finance is a method to monetise the rise in land values resulting from public infrastructure projects. It helps fund public projects by the government and generates a cycle of value creation, capture, and reinvestment.
VCF is unique means of Financing and entails four components
Value Creation
Value Realization
Value Capture
Local Value
VCF can therefore be defined as the appropriation of value, generated by public sector intervention and private sector investment in relation to an underused asset (land and/or structure), for local re-investment to produce public good and potential private benefit.
VCF maintains both an:
Inward rate of return: The revenue return for the private sector following initial investment, and External rate of return: The proportion of this revenue which is reinvested in the same development scheme for the public good.
Policy Guidelines
Value Capture Financing Policy