PPPs as a Solution for Development of Different Sectors in the Government
The management of Mayor Marcelo Crivella has objectives for the city of Rio de Janeiro. Some of these objectives are for daycare centers to have 20,000 new places and pre-schools to have 40,000 new places by 2020.The most important thing for this goals to be achieved is to engage in public-private partnership contracts. The PPP will be responsible for maintenance, non-pedagogical services and construction of educational equipment. According to Felipe Montoro Jens, the Infrastructure Projects specialist, PPP plan is currently being assessed. This partnership model is similar to the first model of PPP of schools in Brazil. Reason for implementation of PPP is stated under the Crivella’s government Program, and as from the very beginning, he had aimed to commit in the education sector.
A total of R$2.3million was used to hire International Finance Corporation (IFC), a member of the World Bank Group, to offer consultation services for the creation and the representation of the project. It is known to be one of the largest private sector development institutions in the world. IFC aims to help their partners with their expertise, financial resources, worldwide experience, and innovative thinking to be able to deal with political, operational and economic challenges. Additionally, IFC has been given the responsibility to offer consultation services to analyze how convenient public lighting PPP can be done in Rio de Janeiro.
On December 30th, 2004, law 11,079 created the modality of public contracting whereby it initiated the contracting and general bidding rules for PPPs. This contract has enabled the government to get resources for the smooth provision of public services. According to Felipe Montoro Jens, PPPs are established on administrative concession contracts. On the other hand, public administration entities and private companies are required to carry out operation and construction of public services and goods. Through PPPs, most objectives can be achieved for the public.