Transforming Bilbao - Labin · BILBAO Ría 2000, S.A. 2009 LUCK • Based on a solid business case...
Transcript of Transforming Bilbao - Labin · BILBAO Ría 2000, S.A. 2009 LUCK • Based on a solid business case...
© Copyright. BILBAO Ría 2000, S.A. 2009
Transforming BilbaoThe strategy, the process and the results so far
Opatija, Croatia, November 2009
Annual Meeting of Mayors and Entrepeneurs
Juan Alayo – Development Planning Director – BILBAO Ría 2000
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INTRODUCTION
• Location and context• The Industrial Past• Keys to Bilbao’s Change• Indicators of socio-economic change• Some considerations
Presentation structure
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Location and Context
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Bizkaia
Metropolitan Bilbao
CONTEXT Location and Population
Basque Country
Bilbao
• Metropolitan Bilbao 900.000• Basque Country 2.100.000• Spain 43.000.000
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The Industrial Past
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THE PAST A rich industrial past
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THE PAST Large scale industrial presence
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THE PAST
• Pollution, Obsolesence• Disjointed urban structures• Unemployment, crisis…
The crisis and the legacy
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THE PAST And in 1983, the floods…
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Key’s to Bilbao’s Change:• A crisis as a starting point• A realistic and detailed strategic plan• Substantial and continued investment• An innovative regeneration model• Some good luck
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A crisis as a starting point
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KEYS
• Large, flat brownfield sites by the river• Also a greater disposition to collaborate• And, in this case, strong leadership
A crisis brings opportunities
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A Strategic Plan
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KEYS
• Initiated in 1989 by the Public Sector• Passed on to BM30 in 1991, a
Public –Private partnership responsible for:– Building public-private consensus– Finalising the strategic plan– Identifying detailed projects and initiatives– And setting them in motion
A Strategic Plan
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KEYS
• Based on a broad consensus• Four key lines of action
– Urban and environmental regeneration– External accessibility - internal mobility– Technology and human resources– Cultural centrality
A Strategic Plan
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Sustained investment
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THE CHANGE
• Cleaning the river: long term investment 700m euros• New water fronts• New residential areas
Urban and Environmental regeneration
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THE CHANGE
• Airport, Metro, Tram, Footbridges
Improving external and internal accessibility
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THE CHANGE
• Compact steelworks• Technological Park
Investing in technology
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THE CHANGE
• The icon: The Bilbao Guggenheim• But not the only thing: Conference Centre, Public
Art…
Cultural centrality
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KEYS
• In the region of €10bn over the last 15/20 years• Completed the main projects of the Strategic Plan
Sustained and substantial investment
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BILBAO Ría 2000Innovative Model for Complex Urban Regeneration Projects
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BR2000
• Set up in November 1992– To regenerate degraded or disused
industrial sites within the Metropolitan Bilbao, coordinating and undertaking developments that integrate urban design, transport infrastructure and the environment.
– In practice: to deal with complex sites that require coordination with a variety of administrations and public sector entities.
Objectives and scope
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BR2000
• Publicly owned, non-profit, limited company• 50/50 split central and basque administrations
What is it
Central government´s land company 25 %
Port authority 10 %
ADIF(railways) 10 %
FEVE (railways) 5 %
15 % Basque government
15 % Diputación Foral de Bizkaia
15 % City council of Bilbao
5 % City council of Barakaldo
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BR2000
• Land consolidation• Transfer from shareholders of
development rights• Land preparation and infrastructure• Sale of plots for development• Other sources
– European funding– Complementary contributions
How it funds developments
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BR2000
• Investment Planned: 1,100 M €– Bilbao 800 M €– Barakaldo 230 M €– Basauri 60 M €
• More than 70% completed to date• Budget of 116 M € for 2009
Level of Investment
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BR2000 Flagship Project - Abandoibarra
• 350.000 m2 • 200,000 m2 green and open space • 800 new dwellings • Office Tower• Shopping Center • Hotel• Paraninfo University of Basque country • Library of Deusto University
January 1992 March 2009
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BR2000 Projects - Abandoibarra
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BR2000 Projects - Ametzola• 110.000 m2
• 900 dwellings• 36.000 m2 park• Covering existing railways• Underground car park for existing residents• Pneumatic rubbish collection system
June 1994 June 2007
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BR2000 Projects - Ametzola
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BR2000 Projects – Barakaldo
June 1998 October 2007
• 500.000 m2
• 200.000 m2 of green and open spaces• 2.200 dwellings (500 Public protection) • Shopping and leisure center • Zone of economic activities• Football stadium• Sport center • Northern ring road• New streets• Pneumatic rubbish collection system• Rehabilitation of old industrial buildings
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BR2000 Projects – Barakaldo
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And…
Some good luck
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LUCK• Based on a solid business case• Financed 50/50 by Basque and Provincial
Governments• Exceeded all expectations: About 1 million
visitors per year• Paid for itself in 8 years• A great effort and a lucky one
The Guggenheim and its effect
0
20000
40000
60000
80000
100000
80 85 90 95 00 05
Overnight stays of Foreign Visitors in the province of Biscay (monthly data, from Jan 1980 to Dec 2008)
Source: Professor Beatriz Plaza, Faculty of Economics. University of the Basque Country. [email protected]
The Icon
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LUCK
• Not the only cultural investment in town
• It accounted for a very small percentage of total investment
• It had tremendous local opposition throughout planning and construction
The Guggenheim
But…
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Socio-economic Change
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Year 1996 2007
Total Visitors to Bilbao 169,000 623,000Congress Events 109 1,007
Congress Participants 20,000 185,000
CHANGE Tourism as a new economic sector
• From not existent, to > 5% of the local economy
• High level visitors
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500
600
700
800
900
1000
1100
1200
92 94 96 98 00 02 04 06
employees => 3 star hotel BilbaoTREND
Source: Professor Beatriz Plaza, Faculty of Economics. University of the Basque Country. [email protected]
CHANGE Hotel employment
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CHANGE
1995 % share 2005 % share
Ranking
TOTAL NACE 266.596 100,00 TOTAL NACE 379.985 100,00
1 G-Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods. NACE 50-52 50.664 19,00
K-Real estate, renting and business activities. NACE 70-74 65.578 17,2
2 D-Manufacturing. NACE 15-37 50.335 18,88 G-Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods. NACE 50-52 62.477 16,44
3 M-Education. NACE 80 27.615 10,36 D-Manufacturing. NACE 15-37 54.589 14,37
4 K-Real estate, renting and business activities. NACE 70-74 27.546 10,3 F-Construction. NACE 45 45.268 11,91
5 F-Construction. NACE 45 26.829 10,06 M-Education. NACE 80 34.802 9,16
6 N-Health and social work. NACE 85 15.998 6,00 I-Transport, storage and communication. NACE 60-64 24.527 6,45
7 I-Transport, storage and communication. NACE 60-64 15.792 5,92 N-Health and social work. NACE 85 21.308 5,61
8 H-Hotels and restaurants. NACE 55 15.387 5,77 O-Other community, social and personal service activities. NACE 90-93 19.706 5,19
9 L-Public administration and defence; compulsory social security. NACE 75 12.960 4,86 L-Public administration and defence; compulsory social
security. NACE 75 19.446 5,12
10 O-Other community, social and personal service activities. NACE 90-93 11.465 4,30 H-Hotels and restaurants. NACE 55 19.191 5,05
11 J-Financial intermediation. NACE 65-67 10.870 4,08 J-Financial intermediation. NACE 65-67 11.016 2,90
12 E-Electricity, gas and water supply. NACE 40-41 88 0,03 E-Electricity, gas and water supply. NACE 40-41 108 0,03
Employment diversification
Source: Professor Beatriz Plaza, Faculty of Economics. University of the Basque Country. [email protected]
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€1 Biscay 46.694,72 Madrid 46.589,93 Balears 45.851,24 Alava 45.676,65 Teruel 45.364,36 Tarragona 45.228,87 Navarre 44.185,28 Guipúzcoa 42.935,29 Rioja 42.717,810 Barcelona 42.634,9
Spain 38.211,4
Value Added per Employee by Provinces (2003)
Source: Professor Beatriz Plaza, Faculty of Economics. University of the Basque Country. [email protected]
CHANGE Type of employment
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Some final considerations
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Thoughts
• Socio-economic crisis and crucial political and institutional changes:– Late 70s crisis coinciding with the advent
of democracy in Spain– New regional powers
• The Provincial Government is the Tax Authority– Providing a strong financial basis for the
region– Local planning of key investments
Bilbao’s special circumstances
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Thoughts
• There has been no specific branding effort for Bilbao: it emerged
• The Guggenheim has been the key• But the broader mix of city-wide
interventions has also been essential• Bilbao´s image is holistic and conveys
a clear “quality of life” message
Branding and Image
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Thoughts
• There is no formula to replicate the Guggenheim’s impact. It is unique.
• The rest, however, can be emulated with:– Vision– Flexibility– Sustained commitment by all– Attention to quality
• But it needs to be an explicit choice and a responsibility assumed at the highest levels
Can Bilbao’s change be replicated?
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End of Presentation
Thank you