PROJECTS

Private Partnership Structure for Uruguay’s Education System

The problem

Uruguay did not have enough early childhood education centers providing quality, free, early childhood education. In response, the government planned to develop 60 centers through a build-operate-maintain public-private partnership (PPP), but had no experience structuring education PPPs.

How we helped

Castalia advised the government how to structure the PPP. We developed a private partnership structure through financial modelling that proposed an efficient payment mechanism for the services provided by the private party. This included designing minimum service standards that had to be met to trigger payment. Finally, we carried out a risk assessment to minimize possible cost overruns and construction delays.

Impact

Following our private partnership structure, the government awarded the contract to a private party, which began construction early in 2019. An estimated 15,000 children will benefit once the centers are complete.

How can we help you?

How can we help you?