How the Implementation of PPPs Helps to Improve Education Sector

The current mayor of Rio de Janeiro city, Mr. Marcelo Crivella, plans to build new 40,000 units in pre-schools as well as 20,000 places in kindergartens by 2020. For this plan to work, he will require help from Public-Private Partnerships (PPPs) to construct, maintain and provide non-teaching services to the education sector. However, the idea is still in its feasibility study phase, according to Felipe Jens, an infrastructure projects specialist.

This model of partnership is not the first to be implemented in Brazilian schools, as Belo Horizonte city’s administration had already used it by 2012. Felipe states that it was the intention of mayor Crivella to implement such PPPs in his government program. He had also assured his commitment to improve the education sector during his campaign period. The private partners’ role will be to construct and administratively maintain new Infant Education Units while public administration will focus on providing teaching and learning resources.

Felipe reports that the mayor hired International Finance Corporation which is a member of World Bank, to provide consultation services in his plan. Being the largest private sector development organization, IFC will use its financial resources, global experience and expertise to help Crivella’s administration overcome financial and operational barriers. The firm will also provide consultation services in analyzing the feasibility of public lighting in Rio de Janeiro, Felipe Montoro Jens highlights.

Brazilian government enacted the law establishing the implementation of public contracting in December, 2004. The law stipulates general guidelines for bidding and contracting PPPs and concessions. Due to limited resources in the public sector, the government opted to partner with private companies as a perfect alternative to develop, construct, maintain and provide public goods and services. The model of contracting will involve administration of a concession contract that is signed by two entities, public administration and private companies.