Belo Horizonte signs health PPP

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Belo Horizonte signs health PPP

The Municipality of Belo Horizonte in Minas Gerais (Brazil), through the Department of Health, has signed the Health PPP contract with a focus on Primary Care Network in the city of Belo Horizonte with the consortium APS BH, formed by Odebrecht and the construction company Cowan.

More specifically the contract covers the administrative concession for the not-clinic services of infrastructure and support to the Network of Primary Health Care Centers, reconstruction and construction of new units during a period of 20 years. The scope of the PPP involves 77 (seventy-seven) health centers and a laboratory.

The concession has an estimated value over R$2 billion (US$685 million). The maximum annual payment was established in the tender documents at R$111.69 million (US$4 million).

The first tender process for the project was launched in 2012, but it did not receive any proposals. Later, the date for the submission of proposals was extended three times, and, at last, there only one proposal was submitted by the consortium APS BH.​

Additionally, the project was the subject of public consultation between June and July 2014, when 173 questions were presented on various topics such as phase inversion, technical, location of assets to be built, private banks interest to finance the project and project governance rules between government and future concessionaire, among other topics.

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