IDB Invest, a member of the IDB Group, provided a $25 million loan for the purpose of building, operating, maintaining and equipping 23 schools, 9 technology centers and 10 sports centers, all of them public, as part of the Uruguayan government's strategy to help upgrade the country's educational infrastructure.
The implementation will be carried out through a public-private participation (PPP) contract between the National Administration of Public Education of Uruguay (ANEP, in Spanish) and the PPP Infrastructure Education II S.A. Consortium, a special-purpose company created to carry out the project. The total cost of the operation is completed with the participation of other co-financing banks. The first disbursement was made on March 26.
The project constitutes the second package, within a program of four projects under the PPP Educativa modality, and aims to increase both the general educational offer (initial, primary and technical levels) and the public educational-sports offer in Uruguay. The objectives include the promotion of full-time education, especially in unfavorable socio-educational contexts, and the improvement of school conditions. The practice of sports in schools near sports centers will benefit from these new infrastructures.
The project also provides a greater offer of technical and polytechnic schools, bringing these options closer to more population and increasing the educational link with the needs of the most important industries in the interior of Uruguay. In addition, some of the centers to be built will incorporate infrastructure that allows them to generate solar thermal energy to cover their hot water needs for kitchens, bathrooms and changing rooms.
The infrastructure projects financed will be carried out in 16 of the 19 Departments of the country: Montevideo, Canelones, Artigas, Rocha, Colonia, Rivera, San José, Maldonado, Durazno, Tacuarembó, Salto, Cerro Largo, Paysandú, Treinta y Tres y Black river.
This operation potentially contributes to three of the United Nations Sustainable Development Goals (SDGs): End of Poverty (SDG 1), Quality Education (SDG 4) and Industry, Innovation and Infrastructure (SDG 9).
The disbursement of this transaction comes at a time when financing for educational infrastructure becomes highly relevant, since these types of operations may experience credit restrictions due to the current COVID-19 crisis.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Consorcio PPP Infraestructura Educativa II S.A.
Consorcio PPP Infraestructura Educativa II S.A., is a special purpose company created specifically for these purposes. Its shareholders, which are detailed below, are companies with a recognized track record internationally and in Uruguay. BERKES, with more than 75 years of experience, is considered one of the main engineering and construction companies in Uruguay. SACEEM is one of the largest construction and engineering companies in Uruguay, with 67 years of experience in the country and involved in the main infrastructure, energy, industrial and public works projects in the country. STILER, is a local company and specialized in the implementation of construction contracts, with more than 600 contracts implemented to date according to information received by the Promoter. It has been consolidated into three main divisions: building, infrastructure and industrial.