Nature Based Solutions - Implementation Models Database
Urban regeneration in Ferencvaros
A short description of the NBS project
The target area is located in the heart of Budapest. This pioneer project was realized before urban planners would have regognized the importance of urban green spaces. At the same time this project brought measurable market benefits (appreciation of occupied property), also helped to create a neighbourhood community. The project was a succesful tool in mitigating the negative effects of urban heat island, and summer air temperatures significantly decreased.
The objective of the action is the complex development of a run-down part of the district.
NBS Implementation context
Description of the NBS
NBS Impacts scale
object (building, etc.)
Urban density/ Soil consumption
high (dense city center, etc.)
Combined with other(s) environmental friendly solution(s)?
Project manager (leader and main partners): entities names, and know-how involved
Leader: FEV 09. V.Zrt. (Urban Development Corporation owned by the Municipality)
Main partners: 09. District Muncipality of Budapest, citizens & investors
Who (else) was involved in the project ? (Inhabitants, local association, etc.)
In the beginning of the 90s some urban planners started to think about the refurbishment of the area inFerencváros. This area lost role in city, because it started to turn into slum. The houses became obsolete and deteriorated. The population changed, and segregation of lower strata was typical. But this area was in the city centre, near the tubestation, near the most frequented tramline. The planners thought to involve a new concept for both the urban rehabilitation and the financing modell. They successfully could convinced the municipality about the new concept. The involvment of private investors was terribly new at that time in Hungary. It became a modell for further urban rehabilitation projects in Hungary.
The founding of the FEV 09 Zrt. was also a part of the implementation process. This was the first company to be founded by a municipality for implementing urban rehabilitation projects. Later several more followed.
More detail on the process and the role of the different stakeholders (How did it happen?)
This was basically one of the first projects where participatory planning was introduced in Hungary. Participatory planning tools were used in several phases of the project with different circles of stakeholders.
OPTIONAL Considering the actual impacts, who are the primary beneficiaries of the project.
Local population and citizens from other districts, who moved into the new flats, or those who work here. (For example MUTK also is located in one of the new buildings.) In this area there are many institutions, universities, theatres, hospitals too, therefore the customers of these buildings are beneficiaries of the project too.
It's a classical PPP project. FEV 09 has been coordinating the project for more than 20 years.
Global Estimated cost of the project
Private Finance Initiative (PFI)
Description of the financing mechanism
The goal was to achieve that each forint (HUF) of local government contribution, 10 forints private equity is involved. The infrastucture development had to be ensured by the municipality and they got the finance source from the sale of building plots of demolished houses.
Substitute with renewables and natural processes
The municipal tenements were built using own sources and from tenders, and the empty parcels were built in by private capital with new apartment buildings. The gardens were buit by the cooperation of the stakeholders.
Develop scale-up solutions
Expected time for the NBS to be fully effective after its implementation
medium (between 2 to 5 years)
Expected life time of the intervention
more than 30
Already feedbacks on the project? In case, the project has already been adapted to new requisites, please explain the modifications brought
The project started in 1992, more than 25 years ago. During this time a lot of kind of new solutiona and concepts appeard. The project had to adapted continously to the changing circumstances.
Success and limiting factors
Forward -thinking and suistinable plan, PPP finance, good partners and finding the correct investors
Finding the adequate partner, investor was really difficult. In this long time the local political leaderships and stakeholders were changing a lot. In this changing enviroment the project had to keep the initial targets. The urban planners played an important role, from whom the idea of implementation arrived.
What makes this project a pioneer?
Brief description of the innovativeness
The area was problematic because of slum, varying population, old houses with poor conditions. The financing recourses were limited, the municipality had a lack of resources.
Has the project received a prize, an award?
Yes, the project received several different prizes of urban planning, and real estate development.
Has the project received a media coverage? (in reviews, in press, etc.)
Numerous articles addressed the process and the results of the Ferencváros area.