Rio Seeks PPP to Help It Expand Its Child Education Network

by , under Financial Expert

The city of Rio is intent on using Public-Private Partnership (PPP) to expanding the child education network. The plan is to create at least 20,000 and 40,000 new places in day care centers and pre-schools respectively. Feasibility studies on the PPPs are still being carried out. Once complete, these PPPs will come in to construct and maintain the educational equipment.

Fulfilling Campaign Trail Promises

Felipe Montero Jens reports that the current government made it clear on the campaign trail that it was committed to bettering the education sector. Marcelo Crivella, the mayor of the city, is committed to giving the entire education sector in the city a facelift. He is currently consulting widely with his team at the mayor’s office to ensure the current project is a success.His government has brought the International Finance Corporation (IFC)as the official consultant for the project. The World Bank Group member will also be responsible for providing consulting services for the Public Lighting PPP project in Rio de Janeiro. For now, however, the private sector developing institution is focused on project modeling for the child education sector. For the current project, it was hired for R $ 2.3 million to provide expertise, financial resources, global experience, innovative thinking to help with financial and operational challenges.

Legality of PPPs

Felipe Montero Jens reports that similar partnerships have taken place in Brazil before. In 2012, a similar agreement was reached for the first PPP of schools in the mining capital of Belo Horizonte. These PPP structures are in line with Law 11,079 established in December 2004, which allows the government to partner with the private sector for the provision of public services where the government is facing a shortage of resources. The private companies contracted develop, construct and ensure full operation of public goods and services. The companies are sign an administrative concession contract with municipalities, states, the Federal District or the Union which make up public administration.

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