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KPMG, one of the world’s largest management consultancies, named two IFC projects in Brazil among the 100 most innovative and inspiring urban infrastructure projects in the world. In July, 2012, KPMG recognized Bahia Suburbio Hospital and Belo Horizonte Schools in its Infrastructure 100: World Cities Edition as models of how public-private partnerships can improve health and education for underserved Brazilians.
The hospital and school were selected by a panel of independent experts that focused particular attention on projects that help meet the challenges of the rapid growth of cities, which account for over half of the world population and are expected to reach 70 percent of global population by 2050.
The Belo Horizonte Schools is a particularly good example of how PPPs can address the burdens that population growth places on public education budgets. In 2011, IFC supported the Municipality of Belo Horizonte in structuring the first education public-private partnership in Brazil. The municipality can currently accommodate only 35 percent of the demand for kindergarten placement.
The city responded by mobilizing $80 million in private capital and partnering with the Odebrecht Consortium to build and manage 32 kindergartens and five elementary schools. According to KPMG, the schools will fill an urgent need for kindergarten schools in the capital and largest city in the state of Minas Gerais.
The Bahia Suburbio Hospital project, launched with IFC’s support in 2009 as Brazil’s first health public-private partnership, offers similar lessons for the global health industry. KPMG said the new 280-bed hospital dramatically improves emergency hospital services in one of the country’s most underserved districts. In total, it provides health services to more than a million Brazilians.
The state government of Bahia provided $27 million in financing to build the hospital, which is equipped and operated by a consortium of the Promedica and Dalkia companies that are providing an additional $32 million in private investments.
Both projects are part of the Brazilian Private Sector Partnership Program, sponsored by IFC, the Brazilian Development Bank, and the Inter-American Development Bank. KPMG also named two other IFC projects on its Infrastructure 100 list, the Queen Mamohato Memorial Hospital in Lesotho and the Medina Airport in Saudi Arabia.
To read the full KPMG Infrastructure 100 report, visit: http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Documents/infrastructure-100-world-cities-edition.pdf