São Paulo’s Metropolitan Housing Company and the Municipal Housing Secretariat have launched the Public-Private Partnership (PPP) housing capital program. Felipe Montoro Jens, Infrastructure Projects Specialist, says the PPP housing capital program will result in the creation of over 100,000 jobs. Furthermore, citizens can expect 34,000 newly constructed homes from 2018-2023.
What is Public-Private Partnership:
Public resources are often strained in many cities. As early as 2004 the Public-Private Partnership law was introduced. The Public-Private Partnership is a government creation to address the shortfall resulting from strained public funds. The public service sector’s partnership with the private sector for specific projects creates a much-needed solution to funding shortfalls.
Felipe Montoro Jens defines the Public-Private Partnership as a contracting model with an underlying administrative contract between private companies and public administration. The purpose of this administrative contract is to facilitate economic growth and development.
Therefore, where public service resources have grown scarce governments are empowered to develop through a partnership with the private sector. In such a case a contracting agreement is entered into by both sectors. Public goods and services are then operated by private companies who also handle construction and development in the agreed upon area.
São Paulo’s Role:
As the first Brazilian city to use PPP for housing, São Paulo is “an example for other municipalities,” says the city’s mayor, João Doria. São Paulo is amidst new growth in the area of social services, trade and industry. As the city enters this transition and phase of economic growth citizens can expect the availability of more goods as well as much needed job creation.
Felipe Montoro Jens’ Role:
Felipe Montoro Jens has an impressive educational background. He attended Fundação Getulio Vargas in Brazil and Thunderbird, The American Graduate School of International Management, in the United States. His training was concentrated in oil and gas, real estate, sugar and ethanol, and infrastructure. Felipe received experience in the corporate sector and project finance. He has also worked for a number of multinational enterprises over the past 25 years.
Jens is a skilled infrastructure specialist with keen financial sense. He has dedicated years of work in personal and corporate financial strategy, financial responsibility and general finance. He has also served as the Chief Executive Officer of Energipar Captação S.A. and Chairman of Concessionária do Centro Administrativo do Distrito Federal S.A.
Furthermore, he is the go-to expert in the area of Public-Private Partnerships. His expertise concerning financial responsibility and economic waste elimination will no doubt be invaluable during São Paulo’s PPP housing project.
Investments Projection:
São Paulo’s PPP project may require investments of up to $7 billion. Felipe Montoro Jens projects that up to 20% of the overall investment funds will be focused on public facilities and urban infrastructure. This PPP housing capital project will include the construction of housing estates with accompanying daycare centers, health posts, schools and commerce centers.
The city currently has its eye on 12 city lots across multiple districts. The PPP project will result in the gradual development of lots as the funding pours in. Development is slated to begin in the city’s Ipiranga neighborhood. Many of the newly constructed housing estates will be near public transportation.
When the housing construction has been completed families may register. The registration of families for the new constructions will be handled by the city. The selection criteria and specific qualifications for future residency are yet to be determined.
Steps to Project Completion:
This new PPP housing capital project will not serve as a replacement for existing housing creation programs. Instead, the PPP housing capital project foresees compatibility with current housing programs. Furthermore, the project anticipates the additional construction of at least 25,000 new housing units over the next two years. At least 4,000 of the new housing estates are expected to be directly attributable to the PPP housing capital project.
São Paulo’s PPP housing capital project will likely be a great triumph for the city. Afterall, this is not Felipe Montoro Jens’ first rodeo. He has also been instrumental in the use of PPP for other cities, including Rio de Janeiro’s use of PPP in the expansion of the city’s child education network.
