- Definition: An innovative urban-development funding and revenue generation tool.
- Based on the principle that private land and buildings benefit from public investments.
- How it Works:
- Appropriate VCF tools are deployed to capture a part of the increment in value of land/buildings.
- This increment happens due to government’s public investments in infrastructure and policy decisions.
- The captured revenue is then used to fund projects for the public.
- This creates a virtuous cycle: value is created, realized, captured, and reinvested.