The Evaluation of Urban Regeneration Processes
51
Table 1 Intervention costs and contact persons
Municipality of Genoa
Private investor
Demolition of the former Nira building Acquisition areas
Waterway construction
Waterway completion
Elevated stretch substitution (500 m)
Reuse of the S Pavilion (sports hall)
Creation of new buildings, facilities and docks for
mooring boats (53,000 sqm of SA)
Public pedestrian footpaths and areas
Parking for residents, businesses, moorings
Urbanisation works (public car parks, etc.)
Total cost: 50 million euros
sustainability; it must ensure the Private Investor who will develop the intervention
an adequate profit margin for the capital invested.
In order to verify what the economic and financial viability conditions of the “Levante Waterfront” project are, a Cost-Revenue Analysis model (CRA) is developed,
assuming the quantities of intended uses indicated by the Municipality of Genoa for
various intended uses (residential, tertiary, etc.) (Fig. 1—right).
According to the instructions given in the tender documents and in the attached
documents, costs were attributed to the two main parties according to Table 1.
According to the CRA, the evaluation of economic and financial sustainability is
developed on the basis of two indicators (Prizzon 1995; Sdino et al. 2016):
– Net Present Value (NPV), which is the difference between revenues and discounted
costs compared to the time of the assessment and estimated within the intervention/investment time period (55 years);
– Internal Rate of Return (IRR), which is the average percentage of the investment
profitability referring to the time base assumed for the analysis of costs and revenues (one year, two months, etc.).
4 The Evaluation of Costs and Revenues
To estimate the construction costs for the buildings with different intended uses, a
synthetic methodology
6 is adopted while for the connecting channel with the Expo
area of Genoa, a summarised bill of quantities is developed. Apart from the design
6 The costs have been estimated on the basis of unit values taken from the price list for building
typologies of the DEI for similar types and interventions.
51
Table 1 Intervention costs and contact persons
Municipality of Genoa
Private investor
Demolition of the former Nira building Acquisition areas
Waterway construction
Waterway completion
Elevated stretch substitution (500 m)
Reuse of the S Pavilion (sports hall)
Creation of new buildings, facilities and docks for
mooring boats (53,000 sqm of SA)
Public pedestrian footpaths and areas
Parking for residents, businesses, moorings
Urbanisation works (public car parks, etc.)
Total cost: 50 million euros
sustainability; it must ensure the Private Investor who will develop the intervention
an adequate profit margin for the capital invested.
In order to verify what the economic and financial viability conditions of the “Levante Waterfront” project are, a Cost-Revenue Analysis model (CRA) is developed,
assuming the quantities of intended uses indicated by the Municipality of Genoa for
various intended uses (residential, tertiary, etc.) (Fig. 1—right).
According to the instructions given in the tender documents and in the attached
documents, costs were attributed to the two main parties according to Table 1.
According to the CRA, the evaluation of economic and financial sustainability is
developed on the basis of two indicators (Prizzon 1995; Sdino et al. 2016):
– Net Present Value (NPV), which is the difference between revenues and discounted
costs compared to the time of the assessment and estimated within the intervention/investment time period (55 years);
– Internal Rate of Return (IRR), which is the average percentage of the investment
profitability referring to the time base assumed for the analysis of costs and revenues (one year, two months, etc.).
4 The Evaluation of Costs and Revenues
To estimate the construction costs for the buildings with different intended uses, a
synthetic methodology
6 is adopted while for the connecting channel with the Expo
area of Genoa, a summarised bill of quantities is developed. Apart from the design
6 The costs have been estimated on the basis of unit values taken from the price list for building
typologies of the DEI for similar types and interventions.