Scaling up upgrading and managing informal urban growth in the Metropolitan Mexico City Area



Approval Date
Actual Completion Date
Proposal Focus
Core Focus
Secondary Cities
Country Type


The Government of the State of Mexico has been a leader in addressing issues of urban management and planning. Though progress on urban development has been made, the pace and scale of informal growth have surpassed innovation. During the next five years, state housing needs will reach 425,000 units due to demographic growth, 135,000 units to close the current deficit, and 423,000 housing improvements. This is coupled with increasing demand for urban lands. Approximately 626,000 parcels have been developed without regularization, and over the last five years, the state has been able to regularize only 22,000 lots per year. Given this mounting pressures of informal growth over the last decade, EDOMEX is in the process of developing a new strategy for neighborhood improvement and urban expansion which draws on previous lessons but with the aim of increase scale through institutionally and financially efficient interventions.
The proposed activity aims to improve the social and economic conditions in the precarious neighborhoods of the Metropolitan Mexico City Area located in the State of Mexico through improved basic infrastructure and services and local government capacity.
a. Profile the demand for urban services, individual preferences in lower income populations, and willingness to pay for services;  b. Examining the efficiency of current government interventions in land markets and proposing alternatives to for improvement;  c. Exploring and enabling microfinance;  d. Developing institutional models for planning, financing and technical assistance;  e. Facilitating horizontal learning, exchange and dissemination.
Expected Impacts and Results
1. Reduction of urban poverty through upgrading and supporting the scaling up urban upgrading;  2. Serve as a model for addressing similar issues in other fast growing cities in Mexico and the region;  3. Lead to a Bank financed upgrading project at the metropolitan or national level;  4. Sharing and dissemination with similar cities;  5. Heightened awareness and dissemination of upgrading practices.