Rio de Janeiro Merger with Public-Private Partnership

The city of Rio de Janeiro under the leadership of Mayor Marcelo Crivella is aiming at developing 20,000 new daycare centers and 40,000 new pre-school places by 2020. In order to meet its objective, the municipality administration needs help from Public-Private Partnership (PPP). The PPP will play the roles of construction and maintenance of the institutions as well as servicing the educational equipment. The public administration, on the other hand, will responsible for providing pedagogical services and food programs in the institutions. According to Felipe Montoro, an infrastructure project expert, the PPP is currently in the feasibility study stage.

The partnership model will be similar to the first PPP project that built schools in Belo Horizonte, which is a mining area in Brazil. Felipe explains that the purposes of implementing the PPP are not new in the country. The PPP hired the International Finance Corporation (IFC) to provide consultation services for the project. IFC which is a member of the World Bank Group. It is the leading development institution in the private sector in the developing countries. IFC uses its financial resources, expertise, and global experience to assist their partners in dealing with the political and financial challenges facing them. IFC will also provide consultation services that will be essential in examining the feasibility of Rio de Janeiro’s Public Lightning PPP.

In 2004, Law 11,079 was implemented to facilitate public contracting. The law also outlined the general guidelines to be applied for bidding as well as contracting Public-Private Partnerships. The partnership between the public administration and private bodies is important in providing services and public facilities to the public. According to Felipe Montoro Jens, the contract is based on the agreements between the players in the public administration and the private companies charged with the responsibility of developing, constructing and operating the public products.