Mega projects and sustainable city image: evidence from Nuevo Norte Project of Madrid

ABSTRACT

The present paper discusses the case of the Madrid Nuevo Norte Project (MNNP) aiming to examine how MNNP is aligned with the principles of sustainability and the creation of a sustainable image for Madrid. For this reason, the study used empirical data derived via e-questionnaire distributed to 122 executives (urban planners, developers and sustainability experts) located in Madrid. The study highlighted the vital importance of MNNP to meet sustainability criteria for contributing substantially in the improvement of the quality life of final users and for the community in general. In this context, local authorities should give particular emphasis in complying with the principles of sustainability for improving the overall performance of MNNP, ensuring social justice and prosperity for the people of Madrid.

KEYWORDS:

• Mega projects
• urban sustainable development
• city image
• MNNP
• Madrid

1. Introduction

It is a well-known established that the last almost 50 years are characterised by the continuing effort of cities, mainly the industrial ones, to reconstruct their images and creating an even more competitive, and sustainable profile in the globalised multidimensional environment. This process led cities to new development path models facing the impacts that de-industrialisation period generated (i.e. Mendels 1972; Baer 1972; Mega 1996; Kazepov 2005; Lux 2015; Gollin et al. 2016). Under this option, the processes of strategic planning, urban/city marketing and more recently, city branding have an essential role for cities to increase their market share and support their economic development (i.e. Ashworth and Voogd 1990; Paddison 1993; Kotler et al. 1993, 1999; Dahles 1998; Scherrer 2002; Kavaratzis 2004; Anholt 2008; Kavaratzis and Ashworth 2008; Metaxas 2009, 2010; Metaxas et al. 2021). Therefore, urban/city marketing as a strategic planning process actually connected with cities’ development and sustainability (Deffner et al. 2020). To this particular point, strategic planning and the construction of a city’s image as a ‘good’ (Metaxas et al. 2003), is strongly related to the land use and housing policies (i.e. Bramley and Watkins 2016; Hansson 2017) that includes as a key strategy, the existence of ‘prestige projects’ (Loftman and Nevin 1996) or ‘mega infrastructure projects (megaprojects)’ (Kennedy et al. 2014; Mylonas and Xenidis 2018; Ward and Skayannis 2019; Thounaojam and Laishram 2021). In addition, a mega project could be characterised as a single infrastructure project, for instance, the metro extension in the Rotterdam Region in the Netherlands, or the Vancouver Convention Centre expansion or the National Stadium in Beijing (Giezen, 2012; Sroka 2021; Ren, 2016), or to become a more complex infrastructure such as land-use remodelling plans (Ryu and Kwon 2016; Ponzini and Santangelo 2018).

The present paper focuses on the Madrid Nuevo Norte Project (MNNP) that represents one of the largest urban regeneration projects in European practice and receives recently quite research interest (i.e. Baron and Fernandez 2019; Abril 2020; Metaxas et al. 2021; Sotelo Perez et al. 2021). According to DNC (2018a), MNNP is making headway towards the most demanding sustainability standards in the international arena. It seeks to become a benchmark for future urban developments in this area. More specifically, the aim of this paper is to examine how this mega project is related to a city’s sustainable development and the creation of a city’s sustainable image. For this reason, the study used empirical data derived via e-questionnaire distributed to 122 executives (urban planners, developers and sustainability experts located in Madrid. The sections of the paper are the following: Literature review focusing on the concepts of sustainable urban development and urban sustainability are presented on section two, while the third section focuses on sustainable urban image. Section four analyses the mega projects related to sustainability, while the fifth session presents the Madrid Nuevo Norte Project as case study. The sixth section analyses methodology, the data, and the path modelling analysis. Last section concludes.

2. Sustainable urban development or urban sustainability in brief

The concept of sustainable cities and its links with sustainable development have been discussed since the early 1990s (UN 2013). Since the Brundtland Commission’s Report Our Common Future (WCED 1987) and over the last decades, there is an extensive research analysis regarding the concept of Sustainable Urban Development (i.e. Naess 1995; Diamantini and Zanon 2000; Kopp and Petretta 2017; Scipioni et al. 2017) or Urban/City Sustainability (i.e. Alberti 1996; Maclaren 1996; Bulkeley 2006; Turcu 2013). Following Wheeler (1996, iii) definition, ‘sustainable urban development seeks to create cities and towns that improve the long-term health of the planet’s human and ecological systems. Similar to this approach, acknowledged the complexity of giving a clear definition, Camagni (1998) support that ‘sustainable urban development may be defined as a process of synergetic integration and co-evolution among the great subsystems making up a city (economic, social, physical and environmental), which guarantees the local population a non-decreasing level of wellbeing in the long term, without compromising the possibilities of development of surrounding areas and contributing by this towards reducing the harmful effects of development on the biosphere. For other studies, sustainable development was defined as ‘the development that meets the needs of the present without compromising the ability of future generations to meet their own needs’, and social development within the restraints of the life support systems of the planet (Robert et al. 2005). A decade ago, Jepson and Edwards (2010), through an extensive empirical national survey to 1124 American urban planners and practitioners, award three main urban concepts related to sustainable development, the New Urbanism, Smart Growth and the Ecological City in order to define which of these was ‘associated as a core development principle’. According to their analysis, Smart growth is matched most frequently with the sustainable development principles and is the most understood. The ecological city, which is least understood, becomes more frequently matched with the principles as familiarity increases. In addition, the planning of sustainable development should take into account the analysis of local economic forces, the environmental conditions locally and finally, cultural and social distinctive characteristics (i.e. Valentine and Spangenberg 2000; Annan 2002; Conroy and Berke 2004; Bagheri and Hjorth 2007; Kain and Soderberg 2008). The approaches above award in particular three main dimensions of sustainable development in long-term horizon directly connected with urban environment, the economic dimension, environmental and social (i.e. Dempsey et al. 2011; Dahri and Omri 2018).

3. Sustainable urban image

According to Hall (1998, p. 115) building a positive city image constitutes an extremely important part of cities’ economic regeneration. Several studies (i.e. Short et al. 1993; Young and Lever 1996; Avraham 2004; Smith 2005; Zhu et al. 2011; Ramkissoon and Nunkoo 2011; Chan and Marafa 2016; Oshimi and Harada 2019) award the necessity of city’s image reconstruction in order cities to became competitive and attractive and finally to increase their position in a multidimensional environment and integrated European economy. Following the definition of Kotler et al. (1999, p. 160), the place image is ‘the sum of beliefs, ideals, and impressions people have toward a certain place’. The images represent a simplification of a large number of accusations and pieces of information connected with that place. Similar approach has been given by Selby and Morgan (1996), who argued that ‘images constructed by the amount, source and objectivity of the available information for a place/city’, especially in the case of tourist destinations.

Regarding the sustainable urban image, there is no any clear definition since sustainability and sustainable urban development receives a multidimensional character. Urban growth raises a variety of problems that tend to jeopardise the environmental, economic, and social sustainability of cities (Bibri and Krogstie 2017; Ward and Skayannis 2019). Campbell (1996) in his article ‘Green Cities, Growing Cities, Just Cities? Urban Planning and the Contradictions of Sustainable Development’ uses a simple triangular model to understand the divergent priorities of planning. His argument is that although the differences are partly due to misunderstandings arising from the disparate languages of environmental, economic, and political thought, translating across disciplines alone is not enough to eliminate these genuine clashes of interest. On this case we could support that ‘sustainable urban image’ is a sensitive concept, regarding the meaning and explanation that receives from different approaches. For this reason, an extensive number of studies award the concepts of ‘urban regeneration’ (i.McDonald et al. 2009; Deakin 2009; Capolongo et al. 2019; Tarsitano et al. 2020), ‘urban design’ (i.e Carmona 2009; Rehan 2013; Larco 2016) ‘urban reconstruction’ (Clemente and Slavati 2017; Khalaf 2019; Ludovico et al. 2020), ‘urban renewal’ (i.e. Juan et al. 2010; Zheng et al. 2014; Arch 2014; Nesticò and Sica 2017), ‘urban re-imagination’ (Arabindoo 2011) or ‘urban imaginary’ (Smith 2005; Hult 2013) related with urban sustainable development in a variety of dimensions (infrastructure projects, environment, aesthetic, industrial zones, energy, transportation) etc.

4. Mega projects and sustainability: previous studies

Following Dimitriou and Field (2019) mega projects are very large and typically very costly investments and may be found in all infrastructure sectors. Megaprojects are characterised by complexity, uncertainty, ambiguity, dynamic interfaces, significant political or external influences, and periods reaching a decade or more (Kardes et al. 2013; Floricel and Miller, 2001). In addition, all megaprojects strongly related to urban development and competitiveness and consequently they are located in cities or metropolitan regions (Kavaratzis and Ashworth 2008; del Cerro Santamaria, 2019).

A huge number of studies relate the existence of the relationship between megaprojects and urban sustainable development and city branding, focusing on the three pillars, namely economic, environmental and social. For instance, Ninan et al. (2019), seek to understand how a metro rail megaproject in India manages their project community through visible and invisible strategies. Aly (2019) explores how city branding strategies position NEOM (a ‘new city’ in Saudi Arabia) regionally and globally, while Xuefei (2008) examines the role of transnational architectural production in mega project developments in Beijing. Several studies award the impacts (positive or negative) of megaprojects on local economy by fostering local employment, increasing land values, business opportunities, creation of new investments to the area, generate economic benefits for local government or living standards, wealth distribution and competitiveness to local communities (Dimitriou et al., 2015; Song et al. 2018; Li et al. 2018; Zheng 2020; Mitoula and Papavasileiou 2023). In addition, other studies examine megaproject impacts on local and regional environment, focusing on specific sectors such as, water, air and ground pollution, climate change and energy saving, open green spaces, urban aesthetic, etc (i.e. Ugwu and Haupt 2007; Al-Damkhi et al. 2008; Zeng et al. 2015; Reckien et al. 2017; Banihashemi et al. 2017; Karji et al. 2019). etc. Balfors et al. (2005) highlighted that complex changes in land-use patterns and natural habitats happen, resulting in massive pressure on the local natural environment. Furthermore, megaprojects are connected with social factors, such as reduction of social inequality, provision of basic services and civic facilities, improvement of public transportation and reduction of traffic problems, etc (i.e. Xing et al. 2009; Nair and Nayar 2020; Wu et al. 2020; Pardo and Del Prado 2020). On the contrary, mega projects often are connected with negative impacts, like the territorial tensions produced in contexts of extreme social inequalities, irregular distribution of social and civic facilities, insufficient green areas, limited access to water, inefficient and unsustainable public transport solutions (Anguelovski et al. 2019; Metaxas et al. 2023). Social injustice to local communities has also captured the attention of many scholars. Megaprojects have displaced many homes and impacted on the livelihoods of many people, mainly the ones inhabiting the project’s proximity (i.e. Kwai-Cheong, 2015; Kattel et al., 2019; Zhou and Mi, 2017; Thounaojam and Laishram 2021). These issues due to the incorrect implementation of urban development policies have been widely studied and documented in mega-cities such as Cape Town, Durban, Delhi, and Lima (Kennedy 2015). Of course, these negative impacts are often related to the poor management project performance and their failure to deliver the indented outcomes (Denicol et al. 2020). Megaprojects may be viewed as huge development schemes which are particularly ambitious, expensive, and difficult to manage, with a tendency to fail to meet the initial objectives (Schindler et al. 2019). MullerMahn et al. (2021) distinguish four conceptual approaches to explaining the outcome of megaprojects. The first approach awards the complexity of large-scale engineering projects, which are generally difficult to manage and control, while the second provides an explanation that links the outcome of megaprojects to political regimes and the state. The third approach links to the vulnerability of megaprojects in the context of social and economic change. Ansar et al. (2017) [mentioned to MullerMahn et al. (2021)], argue that, contrary to their ambitious goals, big projects are characterised by a particularly high degree of ‘fragility’ due to their exposure to uncertainties. Finally, the fourth approach, highlights the symbolic dimension of large-scale infrastructure projects, especially regarding their role as symbols of progress and focal points of aspiration. In general terms management problems do of course play a role, as observed by Flyvbjerg et al. (2003), but this does not sufficiently explain why projects go wrong (MullerMahn et al. 2021). Megaprojects hardly ever end with complete success or failure, but somewhere in between. Failures may have many causes which are not necessarily part of the project itself, but may be due to their complex environment and the conflicting visions of the multiple actors involved (MullerMahn et al. 2021).

5. Madrid Nuevo Norte Project in brief

Several studies award the land use policies and changes at the case of Madrid region (i.e. Orueta 2007; Fernández-Güell 2014; Margies 2015; Gallardo and Martínez-Vega 2016; Rothengatter 2019). MNNP represents one of the largest urban regeneration projects in European practice (Rondelez and Medina García 2020; Metaxas et al. 2021) that includes new office buildings, homes, green areas and public spaces that will occupy around 75% of the total area of the plan in its set. This project has had citizen participation at all times. The company behind the project information and promotion is called Castellana Distrito Norte. The project mainly is located in the Chamartín station that will be equipped with a transport interchange that includes both urban and intercity transportation, commuter, rail stations of fast-speed trains, which will make it the point most important high-speed in Spain. It will also be equipped with transportation to the Adolfo Suárez airport.

Given the commitment acquired with the environment, around half a million square metres will be allocated to green areas, in which part of them are annexed to existing public parks to create a network of interconnected green areas. These new natural spaces will constitute a green axis and it would extend from the area of the Chamartin station to the Monte de El Pardo, one of the ecological reference areas in Madrid, this track goes through the new Business Center and the Malmea, Tres Olivos and Las Tablas areas (Figure 1). Therefore, a person could walk from Chamartín to El Pardo only passing through these green areas. The integration of three large office towers within the large green areas together with commercial areas is also planned (DCN, 2018a). In addition, the construction of 10,000 homes is expected, 20% of which will be used with social housing purposes. The construction and subsequent use of all these buildings will be based on achieving the greatest optimisation of energy consumption, while the new business centre will provide employment opportunities to almost 130,000 people (DCN, 2018a).

Figure 1. Location and connections to the main transport networks of MNNP.

Source: https://distritocastellananorte.com/project/?lang=en (access: 25/9/2021)

From the beginning, the MNN project has made sustainability its main value, focused on urban regeneration, appearing as a unique opportunity in Europe to implement large – scale pioneering measures of urban sustainability, thus becoming Madrid a leader in the social field, economic and environmental (DCN, 2018b). For this reason and to achieve its sustainability strategy, it has followed the 17 UN sustainable development goals, which are part of the 2030 Agenda, the MNN project is based mainly on 12 of them (DCN, 2018c).

Of course, MNN project, like any other project, awards debate and criticism that has raised over several decades. The MNN project has been developed based on the importance and need to establish deeper relationships and alliances to promote collective responsibility among the different agents and is considered one of the circumstances that favour the achievement of the objectives set (Stott and Scoppetta, 2020). At this point it is important also highlight problems that some neighbourhood associations (AAVV) have encountered regarding the risks that MNNP entails, beginning with the total volume of buildable space, which is disproportionate to the needs of Madrid. Since of the 2,830,000 m², 1,730,000 m², would be destined for offices. The 11,000 proposed homes is also a high number, since according to these associations there are around 150,000 empty and disused houses. Of this total number of homes, only 20% will be allocated to official protection. This represents an imbalance in the city since the Northwest of Madrid is one of the areas with the least social housing and the most empty free market apartments and offices. It would be important to break the difference between the southern districts, which concentrate the majority of public housing (and the most polluting infrastructure), and the northern districts, where luxury apartments and chalets are concentrated. Another problem of the project is the proposed green area that is concentrated in a large concrete slab that will serve to cover the train tracks, a very critical point regarding the planification. Finishing with the risks, Madrid Nuevo Norte does not take into account the construction or adaptation of facilities for existing neighbourhoods in the area of the operation.

In addition, political groups, citizens’ associations, neighbourhood associations, non-governmental and professional urban planning organisations denounced the project, criticising its approval by a progressive municipal government. These groups demanded the cancellation of the operation on the grounds as well as deepening the north – south socioeconomic inequality rift in the city. They urged the City Council to declare the grounds public property dedicated to social uses in order to ensure a sustainable balanced and fair development (Garcia 2021).

6. Arguments and research questions

The first argument that derives from previous studies analysis is that mega infrastructure projects related with positive but also negative impacts on cities development, trying to satisfy the three pillars, namely economic, environmental and social of sustainability and sustainable development. Overall, the creation of a sustainable mega project in Madrid has the potential to bring about comprehensive benefits, balancing economic growth with environmental preservation and social well-being. The second argument is that success or failure of mega infrastructure projects is strongly related with the management capacity. Finally, a third argument is that a mega infrastructure project that aligned with sustainability principles could be create a sustainable city image for the city.

Based on these arguments this study tries to answer to the following research questions:

RQ1:

How a mega infrastructure project could aligned with the principles of sustainability? and

RQ2:

(in this framework) How it would contribute to the creation of a sustainable city image?

RQ3:

What are the benefits for the community of Madrid from the creation of a sustainable Mega project such as MNN?

In short, a conceptual framework was designed which examined the importance of meeting sustainability criteria (mediator variables) in MNN case for: enhancing Madrid’s competitiveness, establishing economic fairness and facilitating the implementation of economic development and local governance strategies (see Figure 2)

Figure 2. Conceptual framework of the study.

7. Methodology

7.1. Method and data

This study based on a previous analysis (Metaxas et al. 2021) that it used quantitative approach through e-questionnaires. The data derived from 122 executives (urban planners, developers, consultants, academics and sustainability experts located in Madrid. This population was considered as the most appropriate to provide information on the issue under consideration given its scientific background and technical knowledge. Simple random sampling was used, which is a basic and widely used type of probability sampling method, offering a fair chance of selection for each member of a population (Malhotra and Birks 2003, 2006). The main advantages of simple random sampling technique are simplicity and ability to provide unbiased, representative samples (Malhotra and Birks 2006). The initial number of questionnaires sent was 200 explaining research goals and the character of the study, gathering 122 valid responses in a Likert scale 1–7 and achieving a response rate of 61%. The questionnaire was designed after the exploration of the relevant academic literature. All variables that were used in the research instrument were mentioned in previous studies. The questionnaire included three sections. The first section concerned the demographic features of the participants in terms of gender, age, educational background and degree of involvement in the construction of MNNP and in mega projects in general. The second section measured the alignment of MNNP with the principles of sustainability. In this context, three sub-sections were included that measured the economic, environmental and social impact of the MNNP, respectively (see Appendix). The third section of the instrument measured the effect of MNNP in applying city marketing strategies. A seven-point Likert scale was used as a response format for all questions, with 1 signifying strongly disagree and 7 representing strongly agree.

7.2. The questionnaire

The research instrument that was used in the study was based in factors that were mentioned in previous studies in the relevant academic literature. Table 1 summarises a number of studies related with the impacts of mega projects (MP). The same factors (variables) mentioned by their codes, used in the empirical part of this study with reference to the Nuevo Norte Project of Madrid.

Table 1. MP relation with sustainable development (economic, environmental and social factors).

Economic factors	Codes	Previous studies
1. The procedures for carrying out a MP done in a transparent manner.	VAR1	Banihashemi et al. (2017)
2. MP will have a positive impact on local employment.	VAR2	Ugwu and Haupt (2007); Karji et al. (2019)
3. MP have a positive impact on tourism development of a city.	VAR3	Karji et al. (2019)
4. MP have high construction costs.	VAR4	Karji et al. (2019)
5. MP cause a significant increase in land value in Madrid.	VAR5	Song et al. (2018)
6. MP cause a significant increase in nearby property values.	VAR6	Song et al. (2018)
7. MP provide opportunities to local businesses.	VAR7	Song et al. (2018); Ugwu and Haupt (2007)
8. There is a high financial risk in the construction of a MP due to the recent economic recession.	VAR8	Song et al. (2018); Boateng et al., (2015)
9. MP have high maintenance cost.	VAR9	Nair and Nayar (2020)
10. The prices of the houses for residents in a MP will be affordable.	VAR10	Nair and Nayar (2020); Xing et al. (2009)
11. MP contribute to the local economic development	VAR11	Xing et al. (2009)
12. MP contribute to the fair distribution of wealth for the citizens	VAR12	Xing et al. (2009); Karji et al. (2019)
13. MP increase the cost of living in the city	VAR13	Xing et al. (2009)
14. MP have economic benefits for local government.	VAR14	Li et al. (2018)
15. MP encourage businesses to make investments in the area.	VAR15	Karji et al. (2019)
Environmental factors
16. MP cause water pollution	VAR16	Ugwu and Haupt (2007); Song et al. (2018); Xing et al. (2009); Li et al. (2018); Karji et al. (2019); Banihashemi et al. (2017)
17. MP cause noise pollution	VAR17	Ugwu and Haupt (2007); Song et al. (2018); Xing et al. (2009); Li et al. (2018); Karji et al. (2019); Banihashemi et al. (2017)
18. MP cause air pollution	VAR18	Xing et al. (2009); Li et al. (2018); Karji et al. (2019)
19. MP ground pollution	VAR19	Song et al. (2018); Xing et al. (2009); Karji et al. (2019)
20. MP promotes efficient urban land usage	VAR20	Song et al. (2018); Xing et al. (2009)
21. MP as a mega project, addresses climate change problems	VAR21	Song et al. (2018); Xing et al. (2009)
22. MP will contribute to energy saving	VAR22	Nair and Nayar (2020); Xing et al. (2009)
23. MP promotes usage of green energy	VAR23	Nair and Nayar (2020)
24. MP will provide sufficient public open spaces	VAR24	Ugwu and Haupt (2007); Song et al. (2018); Li et al. (2018)
25. MP will provide sufficient green spaces (trees, flora, and fauna in neighbourhood)	VAR25	Nair and Nayar (2020); Song et al. (2018); Xing et al. (2009); Li et al. (2018); Karji et al. (2019)
26. MP promotes, green building practices throughout the design and construction processes will be applied	VAR26	Li et al. (2018); Karji et al. (2019)
27. MP will preserve the local character (such as natural landscape) and natural resources during construction	VAR27	Song et al. (2018); Karji et al. (2019)
28. MP is harmonised with the local natural setting and with the surroundings	VAR28	Ugwu and Haupt (2007); Li et al. (2018)
Social factors
29. MP is designed in a way that represents the local cultural and historical heritage of Madrid	VAR29	Ugwu and Haupt (2007); Xing et al. (2009); Li et al. (2018); Karji et al. (2019)
30. Health and safety of the workers will be ensured during the construction of MP	VAR30	Ugwu and Haupt (2007); Song et al. (2018); Xing et al. (2009); Karji et al. (2019)
31. The Community of Madrid is involved in the design and the construction of MP	VAR31	Nair and Nayar (2020); Song et al. (2018)
32. There is public acceptance of MP	VAR32	Banihashemi et al. (2017)
33. MP will ensure safety for pedestrian and public transport users	VAR33	Pardo and Del Prado (2020)
34. The aesthetic quality (visual impact) of MP will be high	VAR34	Song et al. (2018); Li et al. (2018); Karji et al. (2019)
35. MP will reduce traffic problems in Madrid	VAR35	Song et al. (2018); Karji et al. (2019)
36. MP will have a positive impact on the quality of living of the citizens	VAR36	Nair and Nayar (2020); Xing et al. (2009); Wu et al. (2020)
37. MP will reduce social inequity by enabling residents from a wide range of economic levels to live in one community	VAR37	Nair and Nayar (2020); Xing et al. (2009); Karji et al. (2019)
38. MP will ensure security within buildings to end-users	VAR38	Nair and Nayar (2020); Xing et al. (2009); Karji et al. (2019)
39. MP is aligned with resilient planning, enabling future expansions due to population growth	VAR39	Karji et al. (2019)
40. MP will expand mobility and transportation	VAR40	Karji et al. (2019)
41. MP will provide basic services and civic facilities (banks, hospitals, parks)	VAR41	Karji et al. (2019)
42. MP will improve proximity to jobs for the residents	VAR42	Karji et al. (2019)
43. MP will enable walking and biking	VAR43	Karji et al. (2019)
44. MP involves high social risk (involvement of too many multi-level decision-making bodies)	VAR44	Boateng et al., (2015)

Source: Author.

7.3. Methods of analysis

The analysis included three main stages. At first, descriptive statistics were used. As it is stated by Malhotra and Birks (2003, 2006), descriptive statistics are ‘the fundamental building blocks of quantitative analysis’. Then, three Exploratory Factor Analyses (EFA), using the varimax rotation and the principal component approach were employed. The first EFA concerned economic benefits, the second EFA concerned environmental benefits and the third EFA concerned social benefits. The factors that were derived from EFAs were used as constructs in the third stage of the analysis, which was the mediation analysis. According to VanderWeele (2016), mediation analysis is used ‘to assess the relative magnitude of different pathways and mechanisms by which an exposure may affect an outcome’. More specifically, a mediation model suggests that the independent variable influences the mediator variable, which in turn influences the dependent variable. As a result, mediating variables clarify the nature of the relationship between the independent and dependent variables (MacKinnon 2008; VanderWeele 2016). In this context, four models were designed, which examined the importance of meeting sustainability criteria (mediator variables) in MNNP case for: enhancing Madrid’s competitiveness, establishing economic fairness and facilitating the implementation of economic development and local governance strategies (as shown in Figure 2).

8. Analysis

8.1. Profile of the respondets

The majority of the respondents were men (68.9%), between 30–49 years old (66.4%) and well educated (Table 2). The degree of involvement of participants in MNNP was low (mean: 2.29), which was desirable for avoiding response error. Lastly, the level of experience of informants in participating in similar large infrastructure projects was higher (mean: 4.45).

Table 2. Sample demographics.

Variable		N	%
Gender
	Male	84	68.9
	Female	38	31.1
	Total	122	100.0
Age
	18–29	9	7.4
	30–39	34	27.9
	40–49	47	38.5
	50–59	25	20.5
	60+	7	5.7
	Total	122	100.0
Educational level
	University/College	14	11.5
	Master	74	60.7
	PhD	34	27.9
	Total	122	100.0
Experience and Involvement		Mean
	Degree of involvement in MNNP	2.29
	Level of experience in participating in large infrastructure projects	4.45
	(1=Not at all, 7= to a great extent)

8.2. Exploratory factor analyses

Three Exploratory Factor Analyses (EFA) were used with Varimax rotation for reducing and classifying the Sustainability dimensions of MNNP. In particular, from the results of EFA(s), the author created three new variables, namely: Economic benefits, Environmental benefits and Social Benefits of MNNP. All EFA(s) had an acceptable KMO measure, and the Bartlett’s Test was statistically significant at 0.000 level. The inner consistency of each variable was tested with the Cronbach a criterion. In all cases Cronbach a was higher than 0,8, ensuring the overall reliability of the analysis. In more details, in the economic criteria, Cronbach A was 0,873, in Environmental benefits, Cronbach A was 0,913 and in Social advantages, Cronbach A was 0,914 (Table 3).

Table 3. Results of the three exloratory factor analyses.

Construct	Items	Factor loadings	Cronbach A	Kaiser-Meyer-Olkin	Bartlett’s Test of Sphericity (Sig.)
Economic Benefits	VAR2	743	873	858	000
	VAR3	674
	VAR6	741
	VAR7	555
	VAR11	660
	VAR14	565
	VAR15	774
Environmenttal Benefits	VAR20	582	0,913	895	000
	VAR22	705
	VAR23	822
	VAR24	776
	VAR25	711
	VAR26	811
	VAR27	610
	VAR28	587
Social Benefits	VAR29	723	914	896	000
	VAR34	496
	VAR35	781
	VAR36	853
	VAR39	857
	VAR40	634
	VAR41	618
	VAR42	841
	VAR45	811

8.3. Mediation analysis

The mediation analysis firstly revealed that MNNP establishment is not directly associated with the enhancement of the overall competitiveness of the city of Madrid, since p = 0,457 (Table 4). That means that the performance of NN doesn’t not affect directly the competitiveness of Madrid. However, when the Megaproject meets the sustainability criteria then it contributes in the competitiveness of the Spanish capital (Tables 5–6). More specifically, Economic and Social Benefits are mediators between MNNP performance and Madrid’s competitiveness, since in both cases p was < 0,001. On the other hand, Environmental benefits didn’t illustrate an indirect effect (p = 0,742 > 0,05). That means that the construction of MNNP contributes to the improvement of the competitiveness of Madrid only if it meets sustainability criteria (economic and social). In other words, the analysis underscores the notion that major urban development projects, like MNNP, can be a significant benefit to a city’s competitiveness if they are grounded in sustainable practices that encompass both economic and social dimensions. Nevertheless, attention should be also given to environmental aspects for empowering the overall outcome of the Megaproject in the society of Madrid (see Figure 3).

Figure 3. The mediating role of sustainability criteria in the overall competitiveness of Madrid.

Table 4. Direct effects.

							95% Confidence Interval
			Estimate	Std. Error	z-value	p	Lower	Upper
NN_Performance → Competitivness_Madrid			0.053	0.071	0.744	0.457	−0.086	0.192

Note. Delta method standard errors, normal theory confidence intervals, ML estimator.

Table 5. Indirect effects.

									95% Confidence Interval
					Estimate	Std. Error	z-value	p	Lower	Upper
NN_Performance	→	Economic_Benef	→	Competitivness_Madrid	0.241	0.051	4.716	<.001	0.141	0.341
NN_Performance	→	Social_Bene	→	Competitivness_Madrid	0.421	0.085	4.940	<.001	0.254	0.588
NN_Performance	→	Envir_Ben	→	Competitivness_Madrid	0.020	0.061	0.329	0.742	−0.100	0.140

Table 6. Residual covariances.

							95% Confidence Interval
			Estimate	Std. Error	z-value	p	Lower	Upper
Economic_Benef	↔	Social_Bene	0.396	0.081	4.873	<.001	0.237	0.556
Economic_Benef	↔	Envir_Ben	0.348	0.085	4.094	<.001	0.181	0.514
Social_Bene	↔	Envir_Ben	0.680	0.103	6.587	<.001	0.478	0.882

Note. Delta method standard errors, normal theory confidence intervals, ML estimator.

Similarly, the path analysis revealed the mediating effect of sustainability aspects between MNNP performance and economic fairness. As shown in Table 7, there is not direct association between MNNP performance and fairness since p = 0.960. However, when sustainability criteria are met then fairness is ensured since p = 0.021 < 0.05 for Economic benefits, p = 0.009 < 0,05 for Social Benefits and p < 0.001 for Environmental Benefits. That means that when the Mega project is committed to the principles of sustainability economic fairness is ensured (see Figure 4). In summary, the analysis points to the crucial role of comprehensive sustainability in ensuring economic fairness in the context of large-scale development projects. It underscores the need for a multi-faceted approach that balances environmental stewardship, social equity, and economic viability to achieve fair and sustainable outcomes.

Figure 4. The mediating role of sustainability criteria in ensuring economic fairness.

Table 7. Indirect and total effects of path analysis- sustainability criteria and economic fairness.

				95% C.I. (a)
Type	Effect	Estimate	SE	Lower	Upper	β	z	p
Indirect	NN_Performance ⇒ Economic_Benef ⇒ Ec_Fariness	0.11208	0.0486	0.0169	0.207	0.11025	2.3085	0.021
	NN_Performance ⇒ Social_Bene ⇒ Ec_Fariness	0.17000	0.0647	0.0432	0.297	0.16722	2.6282	0.009
	NN_Performance ⇒ Envir_Ben ⇒ Ec_Fariness	0.28755	0.0623	0.1655	0.410	0.28285	4.6186	<.001
Direct	NN_Performance ⇒ Ec_Fariness	0.00583	0.1150	−0.2195	0.231	0.00574	0.0507	0.960
Total	NN_Performance ⇒ Ec_Fariness	0.57547	0.0847	0.4096	0.741	0.52571	6.7980	<.001

Note. Confidence intervals computed with method: Standard (Delta method).

Note. Betas are completely standardised effect sizes.

Additionally, sustainability criteria facilitate the implementation of economic development and local governance strategies. That was detected in the path analysis, which highlighted the mediating effect of sustainability in both cases. Firstly, there was no direct association between MNNP performance and implementation of economic development strategies with p = 0.550. Nevertheless, when economic (p < 0,001) and social aspects (p < 0.001) are taken under consideration the implementation of development strategies is successful (see Table 8). The same also stands for local governance strategies since no direct association was found (p = 0.883). In contrast, all indirect associations were statistically significant (see Table 9). Therefore, when sustainability criteria are met then MNNP leads to the efficient application of policies on a local and economic level. As shown in Tables 8 and 9, the overall significance of the designed models is based in the mediating effect of the three sustainability criteria: Economic, Social and Environmental (see Figures 5 and 6). In essence, the analysis suggests that when mega projects like MNNP are designed and executed with a strong commitment to sustainability, they not only contribute positively to environmental and social objectives but also enhance the efficiency of policy implementation at both local and economic levels. This approach can lead to more integrated, coherent, and effective policy outcomes.

Figure 5. The mediating role of sustainability criteria in applying economic development strategies.

Figure 6. The mediating role of sustainability criteria in applying local governance strategies.

Table 8. Indirect and total effects of path analysis- sustainability criteria and economic development strategies.

				95% C.I. (a)
Type	Effect	Estimate	SE	Lower	Upper	β	z	p
Indirect	NN_Performance ⇒ Economic_Benef ⇒ Develop_Str	0.2439	0.0457	0.1543	0.3335	0.2280	5.337	<.001
	NN_Performance ⇒ Social_Bene ⇒ Develop_Str	0.4318	0.0609	0.3125	0.5511	0.4037	7.092	<.001
	NN_Performance ⇒ Envir_Ben ⇒ Develop_Str	0.0168	0.0386	−0.0589	0.0924	0.0157	0.434	0.664
Direct	NN_Performance ⇒ Develop_Str	0.0496	0.0829	−0.1129	0.2121	0.0464	0.598	0.550
Total	NN_Performance ⇒ Develop_Str	0.7420	0.0795	0.5862	0.8979	0.6469	9.331	<.001

Note. Confidence intervals computed with method: Standard (Delta method).

Note. Betas are completely standardised effect sizes.

Table 9. Indirect and total effects of path analysis- sustainability criteria and local governance strategies.

				95% C.I. (a)
Type	Effect	Estimate	SE	Lower	Upper	β	z	p
Indirect	NN_Performance ⇒ Economic_Benef ⇒ Local_G_Stra	0.1002	0.0388	0.0241	0.176	0.0946	2.580	0.010
	NN_Performance ⇒ Social_Bene ⇒ Local_G_Stra	0.4530	0.0655	0.3247	0.581	0.4276	6.921	<.001
	NN_Performance ⇒ Envir_Ben ⇒ Local_G_Stra	0.1729	0.0464	0.0819	0.264	0.1632	3.726	<.001
Direct	NN_Performance ⇒ Local_G_Stra	−0.0133	0.0908	−0.1914	0.165	−0.0126	−0.147	0.883
Total	NN_Performance ⇒ Local_G_Stra	0.7127	0.0839	0.5482	0.877	0.6110	8.491	<.001

Note. Confidence intervals computed with method: Standard (Delta method).

Note. Betas are completely standardised effect sizes.

Finally, by using the inverse direction, a fifth model was created that highlighted that sustainability criteria lead to end user satisfaction and social acceptance of the Mega project, which it turns, affect positively the performance of the MNNP. In particular, no direct associations were detected between sustainability criteria and social acceptance of MNNP: p = 0.435 for economic benefits, p = 0.084 for environmental benefits and p = 0.071 for social benefits (see Table 10). On the other hand, indirect associations with economic and social benefits were statistically significant with p = 0.005 and p = 0.002 respectively. The only exception in this case were the environmental factors, where no statistically significant associations were found (see Table 10 and Figure 7). In short, the analysis underscores the interconnectedness of sustainability, end user satisfaction, social acceptance, and the overall performance of a mega project. By prioritising sustainability criteria, a project can achieve a level of success that encompasses both tangible outcomes and intangible benefits like community support and user contentment.

Figure 7. Sustainability criteria and social acceptance of MNNP.

Table 10. Indirect and total effects of path analysis- sustainability criteria and social acceptance of MNMP.

					95% C.I. (a)
Type	Effect	Estimate	SE	Lower	Upper	β	z	p
Indirect	Economic_Benef ⇒ Saf_Soci_Acc ⇒ NN_Performance	0.1308	0.0468	0.0390	0.2226	0.1179	2.793	0.005
	Envir_Ben ⇒ Saf_Soci_Acc ⇒ NN_Performance	−0.0569	0.0435	−0.1423	0.0284	−0.0614	−1.308	0.191
	Social_Bene ⇒ Saf_Soci_Acc ⇒ NN_Performance	0.1929	0.0637	0.0681	0.3177	0.2062	3.029	0.002
Direct	Economic_Benef ⇒ NN_Performance	0.0751	0.0962	−0.1134	0.2637	0.0677	0.781	0.435
	Envir_Ben ⇒ NN_Performance	0.1845	0.1068	−0.0249	0.3938	0.1989	1.727	0.084
	Social_Bene ⇒ NN_Performance	0.2246	0.1243	−0.0191	0.4683	0.2401	1.806	0.071
Total	Economic_Benef ⇒ NN_Performance	0.2059	0.0985	0.0129	0.3989	0.1856	2.091	0.037
	Envir_Ben ⇒ NN_Performance	0.1276	0.1143	−0.0965	0.3516	0.1375	1.116	0.264

Note. Confidence intervals computed with method: Standard (Delta method).

Note. Betas are completely standardised effect sizes.

In sum, the path analysis highlights the vital importance of Megaprojects to meet sustainability criteria for contributing substantially in the improvement of the quality life of final users and for the community in general. More specifically, if MNNP complies with sustainability principles then it enhances the overall competitiveness of Madrid as well as ensures higher levels of economic fairness. Moreover, local economic development strategies are easily applied, underlining the positive impact of sustainability on a local governance context.

9. Conclusions

Τhe aim of this paper was to examine firstly if how MNNP is aligned with the principles of sustainability through the evaluation by the experts, many of them strongly related with MNNP and having a quite clear view from relevant projects. At this case, this is a weakness of our research, because do not include any other social groups (i.e. business or citizens or other unions). More specifically:

The compliance of MNNP with the principles of sustainability is crucial, since it involves several advantages. In particular, five models were developed which showed the mediating effect of sustainability in the overall performance of MNNP. In other words, when sustainability criteria are met MNNP performance is associated with economic fairness. It seems that MNNP provides economic advantages and opportunities for the majority of the population of Madrid, revealing that sustainability is a cornerstone of equitable development. This fact gains growing importance since it links the construction of large infrastructure projects with the overall wellbeing of the community. However, for doing so, sustainability criteria during the design, construction and maintenance phases should be considered. Secondly, if MNNP complies with sustainability principles then it enhances the overall competitiveness of the Spanish capital on an international basis. Therefore, sustainable development is not limiting the opportunities for growth, but instead provides an alternative model of development with multiple benefits. Thirdly, the sustainable character of MNNP accelerates and facilitates the implementation of local economic development strategies, highlighting the positive impact of sustainability on a local governance context. In general, local governance should shift to more sustainable practices and MNNP is an efficient vehicle for doing so. Lastly, when sustainability criteria met MNNP succeeds in gaining social acceptance. It seems that in this case the benefits of the Mega project are visible to the society as a whole. The transformation of the north of Madrid is a sustainable project, which focuses on reducing pollution, promoting energy efficiency and reducing the consumption of natural resources, all these factors are combined in a successful formula to achieve a profound change in the mobility model in the city. The commitment to sustainability is also reflected in the active participation of citizens, whose opinions were collected through surveys and participation in forums and associations, is particularly relevant and novel. Concerns and experiences as neighbours have been essential factors in the planning of the project, and will be implemented in its final development. Of course, all these above depended on the sufficient planning and implementation of project management process. On this case we could support that ‘sustainable urban image’ is a sensitive concept, regarding the meaning and explanation that receives from different approaches. In this context, local authorities should give particular emphasis in complying with the principles of sustainability for improving the overall performance of MNNP, ensuring social justice and prosperity for the people of Madrid.

10. Theoretical and scholarly contribution

A study examining sustainability issues for mega infrastructure projects in Madrid would contribute to academic and practical fields in several ways. Firstly, such a study would enhance the theoretical understanding of sustainability in the context of large-scale infrastructure projects. In terms of conceptual contribution, the study advances the theory of urban sustainability and resilience by demonstrating how MNNP integrates sustainable urban design principles to enhance Madrid’s environmental, social, and economic resilience. It utilises and expand upon existing frameworks of sustainability, which emphasises the importance of balancing economic growth with environmental protection and social equity. Moreover, the paper contributes to the understanding of how mega projects serve as catalysts for comprehensive urban regeneration, transforming underutilised or degraded urban areas into vibrant, livable spaces. Besides, the study explores how MNNP contributes to Madrid’s city branding efforts, positioning it as a leader in sustainability and innovation on the global stage. This includes examining the role of mega projects in place making and their ability to influence perceptions of the city. In this context, the current project engages with place-making theories, including how physical spaces influence social interactions and community building, and how these spaces contribute to the overall image of the city. Finally, the current paper investigates the socio-economic impacts of MNNP, including job creation, housing, and social infrastructure development, contributing to a broader understanding of how mega projects can drive sustainable economic growth and social well-being. In this context, the study critiques theories related to urban economics and social equity, examining how the benefits and burdens of mega projects are distributed among different populations.

Our findings are in line with the findings of Mitoula and Papavasileiou (2023), Zheng (2020) and Mirzayeva et al. (2020) who also supported that sustainable mega projects incorporate various benefits for the societies that they serve. For example, Mitoula and Papavasileiou (2023), focusing in the case of Athens Metro in Greece, found that such projects can contribute to sustainable urban and regional development by considering the three pillars of sustainable development. On the top of that, the sustainability of the mega project is linked with its overall social acceptability, revealing that sustainable mega projects are widely socially acceptable. However, lack of communication of the multifaceted benefits of these large scale projects can harm acceptance (Thounaojam and Laishram 2021). In agreement, Zheng (2020) founds that sustainable mega projects lead to the enhancement of the overall competitiveness of the local communities that they serve and this is reflected in socio-economic terms such as GDP, government revenue, and population size, etc. Lastly, Mirzayeva et al. (2020) also argue that mega projects that are aligned with the principles of sustainability ensure the protection of natural resources and cultural heritage as well as enhance urban development and competitiveness. It seems that overall, sustainable mega projects have the potential to transform societies in a holistic manner, addressing pressing environmental challenges while promoting economic development and social well-being. In this context, authorities can ensure that mega projects not only contribute positively to economic development but also adhere to the principles of sustainability, benefiting both current and future generations.

11. Practical contribution

The findings could inform policy-making at both local and national levels. By identifying best practices and potential challenges in implementing sustainable infrastructure projects, the study could guide policy decisions and regulatory frameworks. In addition, the study could offer practical solutions and strategies for overcoming sustainability challenges in mega infrastructure projects. This can be particularly valuable for urban planners, developers, and governmental bodies involved in such projects. Furthermore, it could help in establishing benchmarks and standards for sustainability in large-scale urban projects. This would be beneficial for future projects not only in Madrid but also in other urban settings. Moreover, by bringing sustainability issues to the forefront, the study could stimulate public discourse on the importance of sustainable development, particularly in the context of rapid urbanisation and climate change. In particular, such a study is likely to integrate knowledge from various disciplines like urban planning, environmental science, economics, and sociology. This interdisciplinary approach can enrich each of these fields and promote a more holistic understanding of sustainability. Furthermore, while focusing on Madrid, the study’s findings could have implications for other cities worldwide, particularly those facing similar sustainability challenges with mega infrastructure projects. Finally, the study could contribute to understanding the long-term impacts of mega infrastructure projects on sustainability, providing valuable lessons for future project planning and management. Overall, the contribution of such a study is multidimensional, offering valuable insights and practical applications for sustainable urban development, both within Madrid and in a global context.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Theodore Metaxas

Theodore Metaxas is a Professor of Economic Development at the Department of Economics, University of Thessaly, Greece. His main research interests concern Urban Economic development, Sustainable Tourism and Cultural development, strategic planning and city competitiveness. He has publised more than a 100 articles in well-know scientific journals such as: European Planning Studies, Business History, Journal of Comparative Studies, Place Branding and Public Diplomacy, Sustainability, Journal of Developing Areas, Economics of Governace etc.

Appendix

Questionnaire: Evaluation of the following factors in a scale (1-7).

Table

Economic Factors

1. The procedures for carrying out Nuevo Norte are done in a transparent manner.

2. Nuevo Norte will have a positive impact on local employment.

3. Nuevo Norte will have a positive impact on tourism development of Madrid.

4. I consider the cost of construction of Nuevo Norte as high.

5. Nuevo Norte will cause a significant increase in land value in Madrid.

6. Nuevo Norte will cause a significant increase in nearby property values.

7. Nuevo Norte will provide opportunities to local businesses.

8. There is a high financial risk in the construction of Nuevo Norte due to the recent economic recession.

9. There is a high economic risk in the construction of Nuevo Norte due to the pandemic (COVID-19).

10. Nuevo Norte will have high maintenance cost

11. The prices of the houses and residents in Nuevo Norte will be affordable.

12. Nuevo Norte will contribute in the local economic development of Madrid.

13. Nuevo Norte will contribute in the fair distribution of wealth in the citizens of Madrid.

14. Nuevo Norte will Increase the cost of living in Madrid.

15. Nuevo Norte will have economic benefits to local government.

16. Nuevo Norte will encourage businesses to make investments in the area.

Environmental factors

17. Nuevo Norte will cause water pollution.

18. Nuevo Norte will cause noise pollution.

19. Nuevo Norte will cause air pollution.

20. Nuevo Norte will cause ground pollution.

21. Nuevo Norte promotes efficient urban land usage.

22. Nuevo Norte, as a Mega project, addresses climate change problems.

23. Nuevo Norte will contribute in energy saving.

24. Nuevo Norte promotes usage of green energy.

25. Nuevo Norte will provide sufficient public open spaces.

26. Nuevo Norte will provide sufficient green spaces (trees, flora, and fauna in neighbourhood).

27. In Nuevo Norte project, green building practices throughout the design and construction processes will be applied.

28. Nuevo Norte will preserve the local character (such as natural landscape) and natural resources during construction.

29. Nuevo Norte is harmonised with the local natural setting and with surrounding.

Social factors

30. Nuevo Norte is designed in a way that represents the local cultural and historical heritage of Madrid.

31. Health safety of the workers will be ensured during the construction of Nuevo Norte.

32. The community of Madrid is involved in the design and the construction of Nuevo Norte.

33. There is public acceptance towards the project of Nuevo Norte in Madrid.

34. Nuevo Norte will ensure safety for pedestrian & public transport users.

35. The aesthetic quality (visual impact) of Nuevo Norte will be high.

36. Nuevo Norte will reduce traffic problems in Madrid.

37. Nuevo Norte will have a positive impact on the quality of living of the citizens of Madrid.

38. Nuevo Norte will reduce social inequity by enabling residents from a wide range of economic levels to live in one community.

39. Nuevo Norte will ensure security within buildings to end users.

40. Nuevo Norte is aligned with resilient planning enabling future expansions due to population growth.

41. Nuevo Norte will expand mobility and transportation.

42. Nuevo Norte will provide basic services and civic facilities (banks, hospitals, parks).

43. Nuevo Norte will improve proximity to jobs for the residents.

44. Nuevo Norte will enable walking and biking.

45. Nuevo Norte involves high social risk (Involvement of too many multi-level decisions making bodies).

Other critical factors – NN success

46. Project engineers and technical professionals have the ability to effectively perform Nuevo Norte.

47. Local authorities in Madrid have the ability to effectively manage Nuevo Norte.

48. Nuevo Norte will be completed on schedule

49. The construction of Nuevo Norte will last long.

50. Nuevo Norte will be completed on budget

51. The results or deliverables of Nuevo Norte will meet the expected objectives.

52. Overall, the community of Madrid will be satisfied from the establishment of Nuevo Norte.