Sao Paulo, Brazil, February 25, 2022 – IFC, a member of the World Bank Group, and the Brazilian Development Bank (BNDES), will advise the Municipality of Aracaju on the structuring and implementation of a project aimed at modernizing and expanding the municipality's primary healthcare services with support of private capital and expertise, using the public-private partnership (PPP) model.
This project in Aracaju, in Sergipe State, is part of a broader initiative by IFC and BNDES to promote the expansion and modernization of services in primary healthcare in Brazil. The program aims to advise Brazilian municipalities in the modeling, structuring and implementation of projects that will attract private sector's investments to improve infrastructure and quality in the provision of basic healthcare services to the population, through PPP projects. Aracaju is the second municipality to be part of this program; in February of this year, an advisory contract was signed with the Municipality of Jaboatão dos Guararapes, in the State of Pernambuco.
The preparation of the project in Aracaju is supported by the Investment Partnerships Program (PPI, for its acronym in Portuguese), linked to Brazil's Ministry of Economy, and has 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.
Through the PPP agreement, the private partner will be responsible for constructing new healthcare facilities in a faster and more efficient way and for promoting the improvement of services through providing quality healthcare to more than 600 thousand inhabitants. The private partner will hold technical and financial responsibility for improving operations of 22 primary healthcare facilities spread across the municipality of Aracaju. The project includes the construction, equipping and operation of six health centers (three healthcare units and three Specialized Healthcare Centers, including a Maternal-Child Center and an Imaging Diagnosis Center). The private partner will also provide clinical and non-clinical services, such as building maintenance, concierge, cleaning and surveillance.
IFC and BNDES will carry out technical studies for modeling, structuring, and implementing the PPP project in Aracaju. The studies will include the analysis of different aspects of the project, such as financial, environmental and social, regulatory and legal, as well as a market sounding. IFC and BNDES will elaborate technical options to support the municipality in meeting the environmental, social and financial sustainability goals defined for this project, also supporting the municipality throughout the whole public bidding process until the signing of the PPP agreement with a private partner.
Aracaju will make monthly payments for the services provided by the private partner, subject to meeting pre-established qualitative and quantitative performance indicators in the PPP agreement. 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 continue to be free of charge and fully accessible to the population of Aracaju through Brazil's Unified Health System (SUS, for its acronym in Portuguese).
"Well-structured PPP projects in the Healthcare sector are a key tool to help improve access to quality services and contribute to a stronger and more inclusive Unified Health System. The initiative led by IFC and BNDES, with the support of PPI, seeks to attract resources and expertise from the private sector to bring greater efficiency and sustainability in the provision of public healthcare services in Brazil", says Bernardo Tavares, Head of PPPs at IFC Brazil.
"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 structures, expanding further the offer of quality healthcare services to the population," says Carlos Leiria Pinto, IFC's Country Manager in Brazil.
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.
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About PSPInfra
This project in Aracaju, in Sergipe State, is part of a broader initiative by IFC and BNDES to promote the expansion and modernization of services in primary healthcare in Brazil. The program aims to advise Brazilian municipalities in the modeling, structuring and implementation of projects that will attract private sector's investments to improve infrastructure and quality in the provision of basic healthcare services to the population, through PPP projects. Aracaju is the second municipality to be part of this program; in February of this year, an advisory contract was signed with the Municipality of Jaboatão dos Guararapes, in the State of Pernambuco.
The preparation of the project in Aracaju is supported by the Investment Partnerships Program (PPI, for its acronym in Portuguese), linked to Brazil's Ministry of Economy, and has 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.
Through the PPP agreement, the private partner will be responsible for constructing new healthcare facilities in a faster and more efficient way and for promoting the improvement of services through providing quality healthcare to more than 600 thousand inhabitants. The private partner will hold technical and financial responsibility for improving operations of 22 primary healthcare facilities spread across the municipality of Aracaju. The project includes the construction, equipping and operation of six health centers (three healthcare units and three Specialized Healthcare Centers, including a Maternal-Child Center and an Imaging Diagnosis Center). The private partner will also provide clinical and non-clinical services, such as building maintenance, concierge, cleaning and surveillance.
IFC and BNDES will carry out technical studies for modeling, structuring, and implementing the PPP project in Aracaju. The studies will include the analysis of different aspects of the project, such as financial, environmental and social, regulatory and legal, as well as a market sounding. IFC and BNDES will elaborate technical options to support the municipality in meeting the environmental, social and financial sustainability goals defined for this project, also supporting the municipality throughout the whole public bidding process until the signing of the PPP agreement with a private partner.
Aracaju will make monthly payments for the services provided by the private partner, subject to meeting pre-established qualitative and quantitative performance indicators in the PPP agreement. 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 continue to be free of charge and fully accessible to the population of Aracaju through Brazil's Unified Health System (SUS, for its acronym in Portuguese).
"Well-structured PPP projects in the Healthcare sector are a key tool to help improve access to quality services and contribute to a stronger and more inclusive Unified Health System. The initiative led by IFC and BNDES, with the support of PPI, seeks to attract resources and expertise from the private sector to bring greater efficiency and sustainability in the provision of public healthcare services in Brazil", says Bernardo Tavares, Head of PPPs at IFC Brazil.
"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 structures, expanding further the offer of quality healthcare services to the population," says Carlos Leiria Pinto, IFC's Country Manager in Brazil.
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.
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
www.twitter.com/IFC_org
www.ifc.org/SocialMediaIndex
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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