December 5, 2017 · Financial Expert

20,000 new daycare centers and 40,000 new pre-schools. Such is the objective of Rio de Janeiro mayor Marcelo Crivella, which he is planning to reach by the year 2020. To achieve this, the Public-Private Partnership (PPP) will carry out the construction, maintenance, and education regarding the equipment.

“The PPP is currently in the studying/testing phase,” says the specialist in Infrastructure Projects, Felipe Montoro Jens.

The partnership is similar to the first PPP of schools in Brazil, The intention to implement this PPP, however, is not new for those who accompanied Marcelo Crivella’s government program, Felipe Montoro Jens points out. Even as a candidate, Crivella already made clear his commitment to the education sector.

“The private partner is responsible for the construction and administrative maintenance of the new Infant Education Units (EDIs). The Ministry of Education requested to borrow money from the school lunch funding”, informed the government program of the current mayor of the city of Rio.

The International Finance Corporation (IFC), a member of the World Bank Group, hired for R $ 2.3 million, is the entity responsible for providing consulting services for project modeling. Felipe Montoro Jens explains that IFC is the most extensive private sector development institution in the world.

On its official website, IFC states: “We apply our financial resources, expertise, innovative thinking and our global experience to help our partners overcome their financial, operational and political challenges.”

The International Finance Corporation will also be responsible for providing consulting services to analyze the feasibility of the PPP in Rio de Janeiro. The contract with the institution is R $ 2.1 million, highlights the specialist Felipe Montoro Jens.

Public-Private Partnerships

This modality of public contracting was created by Law 11,079 of December 30, 2004, establishing the general rules for the bidding and recruiting of PPPs. The possibility of a partnership with the private sector is an excellent alternative for the government to fill the scarcity of resources in the provision of public services.

Felipe Montoro Jens explains that the contracting model is based on an administrative concession contract between entities of the public administration (either the Union, the States, the Federal District or the Municipalities) and private companies responsible for the development and operation of public goods and services.

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