Public-Private Partnerships (PPP) have always been the best way to offer government services. All stakeholders are involved in this method, and that helps cut costs, especially through private sector input. But that still maintains the required quality through government regulation. The private sector is largely built on profit, and will strive to operate using a lean financial model. This will ensure a project is implemented using the least amount of money possible. But as the government is mandated to provide services, it will focus on providing these services up to a higher standard.
This creates the perfect fusion between private and public sectors. With PPP plans, the budget is leaner, yet retains government standards that cannot be broken.
Brazil’s education sector has grown exponentially over the years. One individual who stands out with regards in this sector is Felipe Montoro Jens. Felipe is a financial expert, with years of experience in the field. He has been instrumental in the implementation of several infrastructure projects, especially in South America. Montoro Jens’ input has been of interest to the objectives of one of Brazil’s biggest cities: Rio de Janeiro.
Rio intends to create 40,000 new jobs in pre-schools and 20,000 new positions in day care centers by the year 2020. Mayor Marcelo Crivella will oversee this new economic plan.
That’s where PPP comes in. As ambitious as this plan sounds, a successful implementation of PPP will construct and maintain facilities while also offering non-pedagogical services for classroom supplies. But the feasibility of PPP is still in the investment phase.
The model used in Rio’s PPP is similar to the one used to put up the first schools in Belo Horizonte. As this is a government project, government input is a key consideration. This format for PPP is not new however. Mayor Marcelo Crivella has advocated for it previously. He even used it as a campaign agenda long before he got into office.
With his support, the chances of successful implementation of PPP is much higher. The stakeholders ability to work together will be the marker of overall success.. Private partners are meant to be responsible for administrative maintenance and construction of new Infant Education Units (EDIs); while City Hall is meant to be in charge of pedagogical services in the schools.
The International Finance Corporation (IFC) will be providing a consult for the project. IFC was chosen due to vast experience in the implementation of such projects. This was important to avoid criticism of possible corruption, as can happen with these government partnerships. IFC is known worldwide for offering top-notch financial resources and reliability. Such assistance is pivotal to assist stakeholders to overcome operational, political and financial challenges.
For this project, the IFC will also analyze the feasibility of the Public Lighting PPP in Rio. The contract is worth $2.1 million, so all eyes are on it’s implementation. But Felipe Montoro Jens has the proven history to come through this with flying colors.
Public contracting was created on December 30, 2004. This law established general rules for bidding and contracting of PPPs. The possibility of a partnership in the private sector is an excellent alternative for government, when it comes to filling in the gaps for scarcity of resources.
Felipe Montoro Jens says this model was based on an administrative concession contract. Public administration entities and private companies signed this agreement, and are duly responsible for the construction, development, and operation of public goods and services. Learn more about Montoro Jens here.