Sao Paulo, Brazil, February 17, 2022 – IFC, a member of the World Bank Group, and The City Hall of Jaboatão dos Guararapes (State of Pernambuco), with the support of the Brazilian Development Bank (BNDES), have just signed an advisory agreement to design a project aimed at modernizing and expanding the municipality's Primary Healthcare services, with the support of private capital and expertise, using the public-private partnership (PPP) model.
This is the first Healthcare PPP Project within the scope of a broader initiative developed by IFC and BNDES to promote the expansion and modernization of Primary Healthcare services in Brazilian municipalities. The goal of IFC and BNDES' Program is to advisory Brazilian municipalities in the modeling, structuring and implementation of projects that attract the private sector and its expertise in the improvement of long-term non-clinical services by means of a faster construction process of primary healthcare units and private provision of non-core services, such as building maintenance, concierge, cleaning and surveillance. In Jaboatão dos Guararapes's case, with the PPP, the private partner will manage all the technical and financial efforts to build or retrofit 32 planned healthcare units and one City Academy, increasing by 30% the supply of basic healthcare units in the municipality and benefiting more than 700.000 residents.
IFC and BNDES will be responsible for carrying out technical studies for modeling, structuring, and implementing the PPP project in Jaboatão dos Guararapes. The studies will include the analysis of different features, such as financial, environmental and social, and regulatory and legal, as well as a market sounding. IFC and BNDES will present technical options to support the municipality meet the environmental, social and financial sustainability goals defined for this project, and will also support the municipality throughout the public bidding process, until the signing of the PPP contract with a private partner.
The project will entail civil works for greenfield primary healthcare units and for retrofit of brownfield units, as well as the provision of non-clinical services for these units in order to improve access and effectiveness of public healthcare in the municipality.
Jaboatão dos Guararapes will grant a monthly payment for the services provided by the private partner, in accordance with the fulfillment of performance targets pre-established in the PPP contract. At the end of the PPP contract, all the primary healthcare units will revert to the ownership of the city.
The provision of primary healthcare services will keep fully accessible to the resident users of Jaboatão dos Guararapes – the second largest municipality in Pernambuco –, as these services continue to be free of charge to its citizens.
"The private sector can play an important role in the modernization and expansion of the public health sector, contributing with resources and expertise, especially in the context of serious fiscal constraints in the public sector," says Bernardo Tavares, Head of PPPs at IFC Brazil. "This initiative, co-led by IFC and BNDES, will provide the opportunity for municipalities to have access to well-structured projects to foster partnerships with the private sector, which will bring greater efficiency and sustainability in the provision of public healthcare services in Brazil," he adds.
"Access to quality healthcare services has become even more vital with the challenges brought by the pandemic. A modern, efficient, and accessible Primary Healthcare system is key to Brazil's development and economic recovery. The partnership between IFC and BNDES provides the opportunity for municipalities to attract private investments and improve their healthcare structure, expanding the offer of quality health services to the population," says Carlos Leiria Pinto, IFC's Country Manager in Brazil.
This project is being structured with the financial support of PSPInfra, a partnership between the Inter-American Development Bank (IDB), the Brazilian Development Bank (BNDES), and the International Finance Corporation (IFC) to improve the offer of public services in Brazil through the development of infrastructure with the participation of the private sector.
IFC has been providing investment and advisory services to expand access to quality healthcare, introduce innovations in financing and delivery of services, improve quality and efficiency, and complement public sector efforts to achieve national health goals.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About PSPInfra
PSPInfra, created in 2007, is a partnership between the Inter-American Development Bank (IDB), the Brazilian Development Bank (BNDES), and the International Finance Corporation (IFC) to improve the offer of public services through the development of infrastructure in Brazil. The partnership also counts on the participation of the private sector. PSPInfra supports the structuring and implementation of innovative projects conducted in Brazil in line with the best national and international standards. PSPInfra's partners invested their own financial resources to pursue a common goal and cooperate in strategic decisions that steer the partnership's work. They have complementary roles that ensure the success of each project. BNDES contributed with a substantial portion of the resources available, and IFC has been acting as the lead advisor in transactions, with BNDES co-leading certain projects. The execution of new projects under the PSPInfra umbrella may adopt different formats. Said projects can either be led by IFC or have the shared leadership of IFC and IDB and/or BNDES.
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This is the first Healthcare PPP Project within the scope of a broader initiative developed by IFC and BNDES to promote the expansion and modernization of Primary Healthcare services in Brazilian municipalities. The goal of IFC and BNDES' Program is to advisory Brazilian municipalities in the modeling, structuring and implementation of projects that attract the private sector and its expertise in the improvement of long-term non-clinical services by means of a faster construction process of primary healthcare units and private provision of non-core services, such as building maintenance, concierge, cleaning and surveillance. In Jaboatão dos Guararapes's case, with the PPP, the private partner will manage all the technical and financial efforts to build or retrofit 32 planned healthcare units and one City Academy, increasing by 30% the supply of basic healthcare units in the municipality and benefiting more than 700.000 residents.
IFC and BNDES will be responsible for carrying out technical studies for modeling, structuring, and implementing the PPP project in Jaboatão dos Guararapes. The studies will include the analysis of different features, such as financial, environmental and social, and regulatory and legal, as well as a market sounding. IFC and BNDES will present technical options to support the municipality meet the environmental, social and financial sustainability goals defined for this project, and will also support the municipality throughout the public bidding process, until the signing of the PPP contract with a private partner.
The project will entail civil works for greenfield primary healthcare units and for retrofit of brownfield units, as well as the provision of non-clinical services for these units in order to improve access and effectiveness of public healthcare in the municipality.
Jaboatão dos Guararapes will grant a monthly payment for the services provided by the private partner, in accordance with the fulfillment of performance targets pre-established in the PPP contract. At the end of the PPP contract, all the primary healthcare units will revert to the ownership of the city.
The provision of primary healthcare services will keep fully accessible to the resident users of Jaboatão dos Guararapes – the second largest municipality in Pernambuco –, as these services continue to be free of charge to its citizens.
"The private sector can play an important role in the modernization and expansion of the public health sector, contributing with resources and expertise, especially in the context of serious fiscal constraints in the public sector," says Bernardo Tavares, Head of PPPs at IFC Brazil. "This initiative, co-led by IFC and BNDES, will provide the opportunity for municipalities to have access to well-structured projects to foster partnerships with the private sector, which will bring greater efficiency and sustainability in the provision of public healthcare services in Brazil," he adds.
"Access to quality healthcare services has become even more vital with the challenges brought by the pandemic. A modern, efficient, and accessible Primary Healthcare system is key to Brazil's development and economic recovery. The partnership between IFC and BNDES provides the opportunity for municipalities to attract private investments and improve their healthcare structure, expanding the offer of quality health services to the population," says Carlos Leiria Pinto, IFC's Country Manager in Brazil.
This project is being structured with the financial support of PSPInfra, a partnership between the Inter-American Development Bank (IDB), the Brazilian Development Bank (BNDES), and the International Finance Corporation (IFC) to improve the offer of public services in Brazil through the development of infrastructure with the participation of the private sector.
IFC has been providing investment and advisory services to expand access to quality healthcare, introduce innovations in financing and delivery of services, improve quality and efficiency, and complement public sector efforts to achieve national health goals.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About PSPInfra
PSPInfra, created in 2007, is a partnership between the Inter-American Development Bank (IDB), the Brazilian Development Bank (BNDES), and the International Finance Corporation (IFC) to improve the offer of public services through the development of infrastructure in Brazil. The partnership also counts on the participation of the private sector. PSPInfra supports the structuring and implementation of innovative projects conducted in Brazil in line with the best national and international standards. PSPInfra's partners invested their own financial resources to pursue a common goal and cooperate in strategic decisions that steer the partnership's work. They have complementary roles that ensure the success of each project. BNDES contributed with a substantial portion of the resources available, and IFC has been acting as the lead advisor in transactions, with BNDES co-leading certain projects. The execution of new projects under the PSPInfra umbrella may adopt different formats. Said projects can either be led by IFC or have the shared leadership of IFC and IDB and/or BNDES.
Stay Connected
www.ifc.org/lac
www.twitter.com/IFC_LAC
www.linkedin.com/company/ifc-américa-latina-y-el-caribe
www.facebook.com/IFCwbg
www.instagram.com/ifc_org/
www.youtube.com/IFCvideocasts
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