Urban Economics and Planning

Urban Economics and Planning

Measuring the Spatial Consequences of Urban Mega-Projects Financing: Sadr Multi-level Highway in Tehran as a Case Study; Solution or Creation of New Problems?

Document Type : Original Article

Authors
Reza Kheyroddin 1
Javad Kamali 2
Masoud Omidi Bahremand 2
1 Associate Professor, Department of Urbanism, School of Architecture and Environmental Design, Iran University of Science and Technology, Tehran, Iran
2 Master’s in Urban Planning, Faculty of Architecture and Environmental Design, Iran University of Science and Technology, Tehran, Iran
10.22034/uep.2025.545451.1706
Abstract
Introduction 
Urban highways, as examples of megaprojects, require massive financial resources that often exceed the annual budgets of metropolitan municipalities. Financing such projects is typically pursued through methods such as loans, foreign finance, investment, or the sale of building density rights. However, revenue-oriented decisions in municipal financial systems often impose negative consequences, particularly in economic, social, and environmental dimensions. The case of the Sadr Elevated Expressway in Tehran demonstrates that, alongside its positive role in facilitating mobility, the applied financing strategy has produced extensive spatial and physical consequences for the city. The study of the Sadr Expressway in Tehran reveals that this project is one of the notable achievements in civil engineering in the country and globally, in terms of technical and engineering specifications, as well as implementation time. However, in addition to its positive role in facilitating transportation, the way it is financed has imposed extensive spatial and physical effects on the city.
Therefore, the method of providing the necessary financial resources for the construction of the Sadr Expressway mega-project is initially explained based on the revenue sources of the Tehran Municipality. Then, the spatial effects and consequences imposed on the city are measured and estimated, which have been created as a result of the method of financing this project. The consequences of constructing a project of this scale have various dimensions and aspects. This research focuses  aspects of growth in terms of increasing the construction load and the number of private cars.
Materials and Methods
This research employs a quantitative approach with an explanatory and causal method. First, the construction costs of the Sadr Elevated Expressway were estimated based on the Tehran Municipality’s cost schedules. Subsequently, the municipality’s finances from 2007 to 2013 were analyzed, with particular attention to the share of stable versus unstable revenues, and especially the role of selling additional building density in funding the project. The spatial consequences of this financing were assessed by calculating  the added construction, population growth, and traffic load in different districts of Tehran. Data collection was conducted through documentary and library methods, and the financial analysis was carried out using monetary–spatial equivalence techniques.
Findings
The results indicate that approximately 74% of Tehran Municipality’s revenues during the study period were unstable, with density-right sales comprising 85% of these revenues and, overall, 64% of total municipal income. Financing the Sadr project was primarily dependent on these revenues, amounting to 87,698 billion rials (at 2013 values). This strategy led to the construction of a large number of residential units outside the approved urban plans, resulting in an additional potential population of approximately 210,000 people and an estimated 143,000 private vehicles entering the city’s road network. Thus, the measure, initially intended to solve transportation problems, has paradoxically become a source of new spatial, demographic, and environmental challenges. Then, the approaches that can be basic solutions to the public transport flow are briefly mentioned.
Developing a metro network on the scale of inner-city areas and suburban train networks is among them. Rail transport projects, by obtaining a loan from the financial center and repaying it through the income generated from the operation of the rail transport network, can be a sustainable solution and do not create undesirable spatial consequences for the city. Developing a rail transport network largely controls urban sprawl. On the other hand,  It enables desirable and controllable development and planning for the city and its surroundings, which is the continuation of the present research.
Conclusion
The case of the Sadr Elevated Expressway illustrates that reliance on unstable financial resources, particularly density-right sales, exacerbates spatial overloading and produces new urban problems. As an alternative, expanding public transport systems such as the metro, with financing methods based on loans and repayment through operational revenues, proves to be more effective and socially equitable. Moreover, funding road infrastructure through user-based charges, such as personal vehicle tolls, prevents the imposition of costs on all citizens and aligns better with social justice. Ultimately, conducting cost–benefit assessments before the implementation of megaprojects and considering their spatial consequences are indispensable requirements for metropolitan management.
Keywords
Financial Resources
Sadr Multi-level Highway
Spatial Consequences
Tehran
Urban Development Megaproject

Subjects

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Urban Economics and Planning
Volume 6, Issue 4
Winter 2026
Pages 244-259

  • Receive Date 06 September 2025
  • Revise Date 26 September 2025
  • Accept Date 27 September 2025