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”.
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 ?
- 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
- 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).
The Métropole du Grand Paris (MGP), the governance structure for Grand Paris
- What is its scope ?
- What are its areas of expertise ?
- When will the Métropole du Grand Paris be created ?
- 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.
- 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.