Abstract:
The dramatic increment in the need and expansion of public infrastructure require sustainable
fund source. The need to implement funding the infrastructure form the infrastructure itself by
capturing the value uplift due to pubic action were become an important issue in developing
countries like Ethiopia. The main issue of the research was, most research done was focused on
financing public infrastructure using traditional funding mechanism, but this research focuses
includes the possibility and rightfulness to implement land value capture to solve the problem in
shortage of finance to expand infrastructure in the study area. The study applied both qualitative
and quantitative approaches. Both primary and secondary data sources were used. Primary Data
were gathered from163 respondents chosen using systematic random sampling techniques. 10 key
informant interviews and 12 FGD selected purposively were undertaken. Secondary data were
gathered from different written and documented sources. The data analyzed using excel and Stata
Statistics software. The finding of this study showed that there was higher need of sustainable fund
source to respond increase in infrastructure expansion demand in the future. The positive
relationship between public infrastructures and land value increment in the study area were an
indication of the rightfulness of implement appropriate land value capture mechanisms. The
mechanisms must have devised to fit for each particular situation. Therefore, applying land value
capturing is legitimate to solve shortage of finance for future expansion of public infrastructure in
Debre Markos town.
Keywords: pubic infrastructure, land value capture, sustainable fund source, value increment