Rio de Janeiro, May 16, 2017—The
City of Rio de Janeiro has just signed a contract with the International
Finance Corporation (IFC) – a member of the World Bank Group – to help
structure and implement a public-private partnership to build and maintain
approximately 130 new schools, providing thousands of children with access
to a pre-school and kindergarten education.
Despite the increase in public spending on
education over the last four years, Rio de Janeiro has a waitlist of 32,000
seats for kindergarten students and 12,000 preschool students. The waitlist
is expected to reach 55,000 children by 2020.
In collaboration with the World Bank, IFC
will carry out detailed studies and develop a PPP agreement to help Rio
de Janeiro’s government partner with a private company that will design,
build, finance, operate, and maintain, approximately 130 schools for up
to 30 years. Under this model, the private partner will be responsible
for the provision of non-pedagogical services, such as cleaning, maintenance,
reception, surveillance, and utilities management. The municipality continues
to be responsible for the pedagogical services, including hiring and managing
the schools’ faculty and defining the programmatic content.
“The new schools built under the PPP will
provide the classrooms needed to help eliminate the wait list and provide
new spaces for 55,000 children, including many from Rio’s poorest neighborhoods,”
said Hector Gomez Ang, IFC Brazil Country Head. “Rio de Janeiro
has prioritized hiring more teachers and partnering with universities and
NGOs to develop and implement new evaluation and qualification programs.
This project will support the city’s efforts to make sure every child
has access to quality early childhood education services.”
Earlier this month, IFC and the City of Rio
de Janeiro also signed a contract for IFC to help the city design a PPP
that will overhaul Rio’s public street lights, with the potential to be
the largest public lighting PPP in Latin America. The project will build
on studies carried out by the World Bank in 2014, and the World Bank office
in Brazil will be a key partner for the project.
“The city already spends nearly $60 million
a year on energy to run its street lights; that is 60% higher than New
York City spends, even though Rio’s population is smaller. With proper
technology and maintenance, this bill could be potentially cut in half,
providing more revenue for the city to invest on other priorities, such
as health, housing, and education.” said Luciano Cordeiro, Rio de Janeiro’s
Under-Secretary for Strategic Projects.
Under the PPP, Rio de Janeiro will partner
with a private operator who will upgrade the city’s nearly 425,000 street
lights, most of which use costly and toxic sodium vapor or mercury to produce
light. They will be replaced by LED lights, which international studies
have shown can save on average 50% on a city’s energy bill, reducing CO2
emissions, provide improved visibility for people and cars, and increase
safety by better lighting streets and parks. The city government will prioritize
neighborhoods with the highest crime and violence indicators, many of which
are in Rio’s poorest suburbs.
The education and street lighting projects
are the first initiatives under a Memorandum of Understanding (MoU) entered
into between the World Bank Group and Rio de Janeiro’s Municipality in
February 2017. Under the MoU, the World Bank Group will help the city better
engage with the private sector and promote development in education, healthcare
and public lighting across the city.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with 2,000 businesses worldwide, we use our
six decades of experience to create opportunity where it’s needed most.
In FY16, our long-term investments in developing countries rose to nearly
$19 billion, leveraging our capital, expertise and influence to help the
private sector end extreme poverty and boost shared prosperity. For more
information, visit www.ifc.org
In October 2007, a partnership of IFC, the
Brazilian Development Bank (BNDES), and the Inter-American Development
Bank (IDB), created the Private Participation Promotion Program, to support
the implementation of infrastructure projects in Brazil. The program aims
to support the participation of private sector as partner to governments
– at the municipal, state and federal levels –, by helping them to structure
concession and PPP projects in several infrastructure sectors, such as
education, health, highways, and airports. For more information, visit
Partnerhip page at www.ifc.org.