![\"By](\"https:\/\/openhumanitiespress.org\/feedback\/wp-content\/uploads\/2013\/05\/George_Leuzinger_-_Gamboa_e_Caju-1.jpg\")
<\/a>By Creator:George Leuzinger ([1]) [Public domain], via Wikimedia Commons<\/p><\/div>Apropos of our love of the air, I’ve been following the redevelopment of Rio de Janeiro’s main port, which lies near the center of the city on Guanabara Bay near the vicinity of Gamboa, Caju and S\u00e3o Crist\u00f3v\u00e3o. The area is currently hostile to human inhabitation. In the 1960s and 70s under the developmentalist military governments, the waterscape was dissected from the cityscape by means of an elevated freeway, which gashed the area and effectively ensured its utter deterioration. With the awarding of the 2014 World Cup\u2122 and 2016 Olympic Games\u2122, however, Rio\u2122 now reimagines itself as a Global City\u2122. Accordingly, the city has embarked on two massive undertakings in particular that have drawn my attention: the militarized invasion of the Complexo do Alem\u00e3o favela; and the redevelopment of the port under the plan known as “Porto Maravilha.”<\/p>\n
An official description of Porto Maravilha can be found here<\/a>. If you understand Portuguese, you will enjoy an official video of the project here<\/a>. Essentially the plan calls for mixed-use residential and commercial developments, the burial of freeways underground, the reinstallation of streetcar\/tramways (which disappeared in the early 20th century I believe), construction of pedestrian and bike paths, the building of two new museums, and the temporary location of the Olympic village and other services related to the Games on-site. And because this is to be Rio’s global city, one of the museums — dramatically built on a large jetty of concrete thrust into the waters of Guanabara — will be designed by Santiago Calatrava. Of course\u2122. And since no redevelopment would be complete without culture (it goes without saying), the other museum will be the new house of the Museu de Arte do Rio. Of course\u2122.<\/p>\n My interest lies in how Porto Maravilha will be financed. The entire project is speculative, as all redevelopment projects in fact are. The city government of Rio does not now and will never have sufficient resources to undertake such a massive project. In the past the federal government would have provided funds from its treasury, or obtained loans from the IMF. Today, Rio will raise funding for redevelopment on a promised future of redevelopment bringing profit. So, as is the case with most redevelopment projects nowadays (including waterfront redevelopment in my hometown of Buffalo, NY), the city has sought public-private investment. The city of Rio de Janeiro has partnered with the Caixa Econ\u00f3mica, a huge Brazilian bank that holds funds for the Fundo de Garantia do Tempo de Servi\u00e7o, essentially the Brazilian social security system. Caixa has underwritten the\u00a0air rights<\/strong> to the Porto Maravilha area to the tune of R$2.5 billion (around US$1.25 billion). In turn, Caixa has bundled, and is reselling, these air rights to private developers as Certificados de Potencial Adicional de Constru\u00e7\u00e3o (CEPACs), securities<\/strong> which are publicly traded on S\u00e3o Paulo’s BOVESPA, Brazil’s main stock market.<\/p>\n