IDB Invest adds to funding for schools PPP in Uruguay

IDB Invest adds to funding for schools PPP in Uruguay

Project & Infrastructure Finance Loans Debt Uruguay Latin America Coronavirus

IDB Invest said on Tuesday that it made the first disbursement in a $25 million loan for a schools public-private partnership (PPP) in Uruguay.

"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," IDB Invest said in a press release.

Infraestructura Educativa II, a consortium with the local construction companies Berkes, Saceem and Stiler, won the 22-year PPP contract in May 2018 and agreed to make $97 million in investments to build 23 schools, nine technology centers and 10 sports centers in three years.

The consortium requested a 20-year loan from IDB Invest in August last year. In February this year, it secured a $46.2 million loan from the South American development bank CAF to fund the project.

The project is the second of four schools PPPs that Uruguay's national public education agency ANEP plans to award with a total of $327 million in investments.