Under the management of Mayor Marcello Crivella, the city of Rio de Janeiro aims at creating 20, 000 new day care centers and 40, 000 pre-schools. The city will engage in Public-Private Partnership (PPP) where the private partner will construct and maintain structures and offer other non-teaching services to achieve the targets. Felipe Montoro Jens, an infrastructure expert, notes that the PPP is on the feasibility studies stage.
The collaboration will take the model of the initial PPP done in Brazilian schools, which was done, in the mining capital of Belo Horizonte in 2012. According to Filipe, the partnership does not come as a surprise for those who have been keen on Crivella’s government projects. During his campaigns, he outlined his commitment to the education sector.
The government of the city of Rio notes that building the kindergartens and pre-schools by 2020 is structured to the Belo Horizonte model. It will see the private partner accountable for construction and maintenance of the Infant Education Units (EDIs) while the City Hall will be responsible for the academic sector and school lunches. The Ministry of Education prohibits the transfer of funds from the lunch kitty.
Felipe Montoro Jens also adds that the International Finance Corporation, a member of the World Bank Group, was contracted by the city to provide consulting services for the project for $2.3 million. It is also responsible for consulting services in the analysis of the feasibility of the Public Lighting PPP in Rio de Janeiro.
Partnerships with the private sector are an excellent opportunity for the government to bridge the gap in the provision of public services in cases of scarce resources. The modality of federal contracting was established in 2004. It sets the general rules for the bidding and recruiting processes of PPPs.
Felipe Montoro Jens, while explaining the concept, noted that the basis of the agreement is on an administrative concession contract, which is signed between public entities and private companies to develop, construct and operate public infrastructure or offer services. The public administration, in this case, could be the federal district and municipalities, the states or the union.