The sale of local government-owned land or asset to provide immediate, up-front finance for infrastructure development.

Instrument category

Municipal own source revenue (OSR) and policy steering instruments

Implementation status

Low - limited evidence available

Enabling conditions and success factors
  • Land sales require a trusted and coherent legal framework, strong institutions and clearly defined and enforceable property rights.
Instrument benefits
  • Immediate but a non-renewable source of revenue for regional and local governments.
  • Auction-based land sales can be particularly effective in countries lacking systematic land valuation.
Challenges and risks to implementation
  • Land and asset sales can only be carried out once, so there is a risk that local governments miss the opportunity to capitalise on them in more sustainable ways, such as via leasing or land readjustment.
World Bank. (2006) Land Leasing and Land Sale as an Infrastructure-financing Option.

Want to share new instruments?

The Alliance is actively seeking updates to the financial instruments library. Please complete the form to suggest additional instruments.

Fill out the form