What is the Grand Paris?

The main objective of the Grand Paris project is the sustainable development of the region’s economy and employment with a view to maintaining and even strengthening, the Greater Paris Region’s position among the most attractive international cities. Grand Paris does not have a defined border, nor do Greater London or Greater Berlin. Grand Paris is first and foremost a project, as stated in the law relating to Grand Paris dated 3 June 2010: “Grand Paris is an urban, social, and economic development project which brings together the Greater Paris Region’s strategic areas with Paris at the heart of the Greater Paris area”.

The focus of the plan is the creation of a public transport network, the aim of which is to provide a framework to link the region’s main economic centres, as well to support local development with the network’s future stations as key points of focus. The investment involved is unprecedented as almost €26 billion is to be invested by the time the project is finalised.
To support the new network and its stations in fulfilling the expected impact on development, there will also be an urban development plan on a regional scale. Territorial Development Contracts  (Contrats de Développement Terriorial – CDT), which have been drawn up by both the State and local authorities, form the second key element of Grand Paris. These are the planning and scheduling tools that enable the local elements of Grand Paris to be broken down, for the future stations in particular.
Grand Paris also encourages research, innovation and industrial improvement. Seven territories, or clusters, have been identified as strategic development centres: Saclay (innovation and research), Villejuif – Evry (health), La Défense (finance), Saint-Denis – Pleyel (creativity), Roissy CDG (international exchange and events), Le Bourget (aeronautics) and Descartes – Marne-la-Vallée (sustainable cities).
The creation of the new public transport network and Territorial Development Contracts  (CDT) will support the creation of new economic activity in these areas, which should contribute to the emergence and strengthening of cluster activity. The Paris market’s attractiveness will therefore be strengthened and the city will offer international investors an enhanced level of profile.
While the transportation network may be considered the main component of the Grand Paris project, this ambitious and visionary project, conceived by the government, includes additional themes linked to economic development, housing, higher education, culture, sports and the environment.

Find more details of 7 sectors of Gand Paris Paris : 

Transports

Economic development

Housing

Education

Culture

Sport

Environment

Grand Paris in numbers :

  • 1 urban, social and economic project, the fundamentals of which rest on the creation of a new public transport network: the Grand Paris Express
  • 7 strategic centres identified, in which 22 Territorial Development Contracts  are currently being negotiated
  • 70,000 new homes per year planned
  • 1 automated metro line encircling Paris
  • Over 200 kilometres of network, equivalent in size to the existing Paris network
  • 72 stations, including 68 new stations
  • The creation of 4 new lines
  • 2 million passengers per day to use the new network
  • An unprecedented investment of almost €26 billion over 15 years
  • 1 contracting authority: Société du Grand Paris
  • 1 point of governance: the Métropole du Grand Paris

Who is involved in Grand Paris ? 

Grand Paris is an overall project that brings together a large number of institutions (State, Region, local authorities, Paris Métropole, AIGP, AMIF, DRIEA), socio-economic bodies (Chambers of Commerce, ARD) and transport companies (STIF, RATP, SNCF, RFF, ADP, GART).
All are involved in the construction of Grand Paris and are collaborating on the definition and delivery of this key project.
Spotlight on two of the leading institutions in Grand Paris : 
  • the Société du Grand Paris (SGP) which is in some way the State’s armed division in the development of the future automated metro, Grand Paris Express
  • the Métropole du Grand Paris (MGP) which will provide governance for this city-wide project.

 

The Société du Grand Paris (SGP), responsible for building the Grand Paris Express

In 2010, the Grand Paris law created a new public body, fully controlled by the State, the Société du Grand Paris (SGP), which is responsible for the building works contract for the new métro.
It has been placed under the supervision of the Ministry of Territorial Equality and Housing, the Ministry of Ecology, Sustainable Development and Energy and the Ministry of Finance.
The Société du Grand Paris (SGP) has a number of aims:
  • It is tasked with designing and developing the new automatic métro, the Grand Paris Express. In particular, it will be responsible for the construction of lines and fixed installations, the construction and fit-out of stations as well as the acquisition of rolling stock.
  • It can carry out planning and construction projects and, as such, carry out town planning activity in territories that have signed a Regional Development Contract (CDT), if allowed for in the contract. When projects are to be carried out in territories that have not signed a Regional Development Contract (CDT), it is able to carry out projects within a 400m radius around stations after having consulted with the local authorities.
  • It has a supporting role with the prefect for the Greater Paris Region in preparing and harmonising Territorial Development Contracts (CDT).
In the context of its projects, the Société du Grand Paris (SGP) is in permanent contact with all of the other external stakeholders in the project: infrastructure managers (RFF, SNCF, RATP), STIF, elected representatives … etc.

 

The Métropole du Grand Paris (MGP), the governance structure for Grand Paris 

In terms of governance, the State has instated a new level for public territorial intervention within the Greater Paris Region: the Métropole du Grand Paris (MGP), creating a future inter-communal structure as defined by the “MAPAM” law (Modernisation de l’Action Publique territoriale et d’Affirmation des Métropoles – Modernisation of Public Territorial Action and City Affirmation) dated 27 January 2014.
  • What is its scope ?
The Métropole du Grand Paris (MGP) will be a Public Body for Inter-communal Co-operation with tax-levying powers. It will include Parisand the three departments of the Petite couronne (Hauts-de-Seine (92), Seine-Saint-Denis (93) and Val-de-Marne (94)) as well as some districts in the Grande couronne of Paris. In total, the Métropole du Grand Paris (MGP), is responsible for for 6.7 million residents, or more than half of the region’s population.
The Métropole du Grand Paris (MGP) will be divided into “territories” of at least 300,000 residents. Paris will form one territory.
  • What are its areas of expertise ?
The Métropole du Grand Paris (MGP) will cover five main strategic areas of expertise, the most important of which will be local housing policy. It will also be responsible for town planning, economic, social and cultural development, town policy and environmental protection.
It will not have any say in transport which will remain the remit of the Syndicat des Transports for the Greater Paris Region (STIF), with the exception of the Grand Paris Express which will fall under the Société du Grand Paris (SGP).
  • When will the Métropole du Grand Paris be created ?
The Métropole du Grand Paris (MGP) is due to come into force on 1 January 2016. It will be governed by a metropolitan council.
In the meantime, a prefiguration project for the Métropole du Grand Paris has been started. It is co-presided by the Prefect for the Greater Paris Region (who represents the State) and by the president of the union of elected representatives of Paris Métropole, as defined by the “MAPAM” law of 27 January 2014.
Within two years, the prefiguration project, consisting of elected representatives and socio-economic partners, is tasked with:
  • drafting the city plan
  • determining the working practices for the Métropole du Grand Paris (MGP),
  • preparing the legal and budgetary conditions for the creation of this body,
  • determining its operating model,
  • defining a map of 300,000-resident territories within the city and outlining their legal status.

How is Grand Paris financed ?

Greater Paris represents an overall investment of almost €26 billion. 

In his speech on 6 March 2013, the Prime Minister restated that the Grand Paris Express was to go ahead in its entirety, while seeking a number of cost optimisations. The financial budget for the Greater Paris Express is fixed at €22.6 billion
Apart from the creation of a new, automated métro, the Société du Grand Paris (SGP) is also contributing financially to other developments, such as the extension of line 14 between Saint-Lazare and Mairie de Saint-Ouen, the Eole project (RER E) stretching to the West as well as to the Mobilisation Plan. The total expenditure for which the Société du Grand Paris (SGP) is responsible is estimated at €25.5 billion.
What are the finance sources and how are they distributed? 
The project finance will come from tax revenues, State subsidies (optional), local authority subsidies and from loans. 
  • Tax revenues, already in place, are from 3 sources:
    • Local Office Tax (TLB). This tax is financed by owners of commercial real estate. Currently, an element of this tax is allocated to the Société du Grand Paris (SGP) and the rest to the State. To bolster the coffers of the Société du Grand Paris (SGP), the State will no longer draw on this tax from 2014 to allow all revenues to go to financing Greater Paris.
    • Special Infrastructure Tax (TSE) This tax is in addition to Housing Tax and other taxes and is already being paid by all taxpayers and businesses in the Greater Paris Region.
    • Flat-rate Tax on Network Businesses (IFER) Part of this tax, applied to the rolling stock deployed by the RATP, is used to finance Greater Paris.

 

From 2014, the Société du Grand Paris (SGP) with receive over €500 million in tax revenues per year.  

  • If necessary, the state will provide additional budgetary support to the Société du Grand Paris (SGP) of up to €1 billion, which may be drawn from 2015 depending on the company’s financing needs.
  • Local authorities also need to contribute. As requested by the State, they will need to contribute up to €225 million.
  • At the same time, the Société du Grand Paris (SGP) will have recourse to loans,  which it will repay from tax revenues, from receipts from the management of stations (as soon as they are open) as well as from fees due for occupying public places or land which the Société du Grand Paris (SGP) owns.