The Municipality of Uberaba, located in the state of Minas Gerais (Brazil), has suspended the public consultation for the upgrade of the municipal school system through a PPP model.

The deadline for receiving proposals was October 6, but a trade union Sinduscon/Uberaba (Sindicato da Indústria da Construção Civil de Uberaba), ordered the suspension of the process.

According to sources, President of Sinduscon, Roberto Velvet, explained that the entrepreneurs of the construction industry rejected the PPP model, among other reasons, due to small companies could be affected by the process, as the winner of the bid would encompass painting services, renovations, minor repairs and other claims related to construction.

The project includes a total of 99 school, of them, 76 are already developed, 8 are under development and 16 to be constructed by the preferred bidder. 

The contract term would be 30 years, its estimated value is BRL879 million (US$274 million) and the estimated investment for the future concessionaire responsibility is BRL175 million (US$55 million).

Uberaba is a municipality in the west of the state of Minas Gerais. Its population is approximately 300,000 inhabitants with an area of 4529.7 km². It is located on a plateau at an elevation of 823 meters.