Public-Private Partnerships best known by the acronym PPP have become a fundamental development model in the Brazilian society. That is why nobody was surprised when Felipe Montoro Jens an expert in PPPs highlighted the stage at which the city of Rio de Janeiro development plans had reached. The mayor Marcello Crivella hopes the city will develop up to twenty thousand new places in day care centers and forty thousand new places in pre-school centers by 2020. The planned developments will be accomplished through the PPP model and such plans are in the feasibility stage as was highlighted by Felipe Montoro Jens.
The model itself is not new as Felipe Montoro Jens observed, it had been used by the mining capital of Belo Horizonte in 2012. In the program schools were built under the PPP model and Rio de Janeiro’s mayor Mr. Crivella had indicated in his campaign manifesto that he will go ahead and use the model in implementing various development projects more so in the education sector.
In the planned development, Felipe Montoro Jens explained that one of the largest private sector development Institution IFC also a member of the World Bank Group hired for R $2.3 million will be responsible for a number of issues in the implementation of the project. The IFC will be providing all consulting services for project modelling in this project and will also be the lead consultant undertaking feasibility studies of public lighting project that will also be implemented under the PPP model of development.
According to Felipe Montoro Jens, the PPP model has been made possible by Law 11079 of December 2004 establishing the modalities such model would function. It created room for public entities to sign administrative concession contracts with private entities that were prepared to undertake development, construction and operationalizing the public utilities.