en.Wedoany.com Reported - The government of Rio Grande do Sul, Brazil, plans to tender a Public-Private Partnership (PPP) contract focused on improving school infrastructure, with a total investment of approximately 1.4 billion reais (about 272 million US dollars). Despite legal procedural challenges in the bidding process, private sector interest in this area remains undiminished.
The Court of Justice of Rio Grande do Sul has ordered the state government to provide explanations within 10 days regarding alleged irregularities in the PPP bidding notice. The complaint was filed by CPERS, a union representing approximately 80,000 education workers in the state, which also requested an immediate suspension of the auction process.
The tender is divided into three lots, involving infrastructure upgrades for 98 schools, directly benefiting approximately 60,500 students, with a contract term of 25 years. The state government has postponed the auction, originally scheduled for June 26, to July 23, citing requests from potential bidders for more time to review the contract terms.
Despite legal setbacks at the state level, Brazil's school PPP projects continue to progress overall and effectively stimulate private sector participation. Alessandro Hidalgo, Commercial and New Business Director at Grupo Terracom, told BNamericas: "We are not yet involved in the education sector, but school infrastructure projects are of high interest to our shareholders. We have significant positions in other infrastructure areas like sanitation, and given that education also has strong social impact, it is attracting our attention."
In recent years, as Brazilian states and municipalities increase investment in educational infrastructure, such PPP contracts have shown a clear growth trend. In March this year, the government of Paraná state auctioned a PPP contract for the construction and maintenance of two public schools, with an estimated project investment of 1.7 billion reais. The auction was divided into two lots and was highly competitive, with Brazilian company CS Infra ultimately winning based on its advantageous bid, defeating the Araucária Consortium, the JOPE ISB Consortium, and the Aedifica Paraná Consortium. In the same month, Minas Gerais state also completed a PPP tender, where the IG4 BTG Pactual fund won the rights to manage and maintain 95 public schools serving approximately 70,000 students, requiring an investment of 5.1 billion reais over the next 25 years.
Dense Pipeline of Future Projects
Meanwhile, the government of São Paulo state plans to hold a PPP auction in the first half of 2027 with an investment of 1.7 billion reais to maintain 143 schools, a project supported by the Inter-American Development Bank (IDB). In addition to state-led projects, the Brazilian Development Bank (BNDES) is also supporting municipal governments in structuring school PPP projects. In Boa Vista, Roraima, a project involving the construction and operation of up to 34 educational facilities is advancing, expected to benefit approximately 17,000 students, with the auction scheduled for the first quarter of 2027. In Maceió, Alagoas, the PPP project includes the construction and maintenance of up to 30 new early childhood education centers and the provision of non-teaching services, expected to serve approximately 12,000 students, with the auction planned for the fourth quarter of 2026. In Natal, Rio Grande do Norte, the related project involves the construction and operation of up to 25 educational facilities, expected to accommodate approximately 66,250 students, with the auction scheduled for the fourth quarter of 2027. In the city of Rio de Janeiro, an administrative concession contract is being structured, covering the renovation, reconstruction, management, operation, preservation, and maintenance of 212 schools, expected to benefit approximately 128,000 students, though the auction date has not yet been finalized. In the city of Santa Maria, Rio Grande do Sul, a project involving the construction and operation of up to 30 educational facilities, expected to impact 7,500 students, is anticipated to be auctioned in the second quarter of 2027.
