Felipe Montoro Jens on PPPs and Rio de Janeiro Development

The Public-Private Partnerships expert Mr. Felipe Montoro Jens recently made revelations on the City of Rio de Janeiro plans to develop several projects through the PPP model. The Mayor Mr. Marcello Crivella has led the city council in making elaborate plans to develop up to twenty thousand new places in various day care centers and more than 40,000 similar places in pre-school places. In the arrangement the private entities will carry out the development of the projects and the running of all non-didactic roles related to the educational facilities.

While public-Private Partnerships have not been the main model for developing educational facilities amongst city councils, it prudent to learn that similar model has already been used in developing schools by the Belo Horizonte city administration in 2012. As Felipe Montoro Jens notes, those who followed Crivella’s campaign are bound to remember that the mayor promised to develop the institutions through the PPP model following the Belo Horizonte criteria.

According to Felipe Montoro Jens, the International Finance Corporation popularly known as the IFC has been contracted to be the lead consultant offering project modelling services at the cost of R $2 .3 million. The IFC is a member of the World Bank Group and the single largest private sector developer in the third world. The institution will be consulting for other projects as the Public lighting in Rio in which it will hired for R $2.1 million.

Felipe Montoro Jens contends that the PPP efficiency has been made possible by a 2014 Law 11079 that established the modalities within which the PPP ventures will operate. Government entities, who maybe federal districts, municipalities, states or the Union, will cover their financing shortfalls by granting administrative concession contracts to private developers. The developers will remain responsible for the development, construction and the day to day running of the facilities.

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