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"Programa Caminho da Escola"
Fundo Nacional de Desenvolvimento da Educação
Brazil

The Problem

In 2003, the Education Development National Fund (FNDE) made a research about school transportation in rural areas. It collected data from a sample of 218 municipalities, all over Brazil. In those cities, 24,000 students were out of school due to lack of transport. Not surprisingly, many of those were from the poorest country areas. Three years later, FNDE, together with the University of Brasília, conducted another research about student transportation buses, in rural areas, much more comprehensive. It analyzed the conditions of this transportation in 4,500 cities (80% of Brazilian municipalities), and that showed the models offered by the industry were not appropriate for countryside roads.
FNDE also dealt until 2007 with two policies for student transportation. One was the National Programme of Student Transport (PNTE), which ended on the same year, due to educational funds reorganization. Its first goal was giving financial aid to municipalities and NGOs, in order to support them for acquiring proper transportation for students of rural areas, as well as for disabled ones, who are among the most fragile of educational groups, in terms of access to school. From 2004 until 2007, it dealt only with vehicles for disabled students, and NGOs. Those received each around R$ 35,000.00 (R$ = reais, Brazilian currency), for aiding them to get a new vehicle. However, a proper rural vehicle is nowadays around R$ 140,000.00, and most of Brazilian municipalities face funding difficulties. On its last year, PNTE assisted more than 1,000 municipalities in Brazil (around 20% of them), in a total of R$ 48,000,000.00.
The other programme is the Student Transportation Support National Programme (PNATE), still running. Its purpose is to aid federate agents about vehicle maintenance. In 2007, for instance, 3.5 million students of Elementary School level were benefited, from the total of a 7.3 million students on the same stage and area, in an amount of R$ 292,000,000.00.
Despite those results, FNDE could not deal yet with a suitable rural transportation policy, once it was very common to have old vehicles, and not appropriate for rural conditions. The resources offered for buying vehicles were far from adequate to those cities´ reality, too. A new policy for this should be built, bearing in mind the transport has to be apt for rural conditions, safe for students, able of assuring their school attendance, and with a structured and accessible funding, in order to make this policy reachable for poor municipalities.

Solution and Key Benefits

 What is the initiative about? (the solution)
The programme “Caminho da Escola” – PCE (School pathway), was released in 2007. Its goal was to renovate and broaden rural school transportation fleet, assuring safety for the students and their carrying, which would minimize school nonattendance.
One of the benefits was the issue of acts for fiscal releasing the private sector which business has to do with rural transportation. This put the final price down in 30%, in average.
Another goal was a special funding line with the Social and Economic Development National Bank (BNDES), a Brazilian development agency. With a low interest rate, 4% per year, considered one of the smallests in Brazil, a maturity period up to 72 months (including the grace period of up to 6 months), among other issues, it was possible for many cities to join the programme.
About regulatory issues, PCE also managed to have specific acts for rural transportation. This improves to set up minimal conditions for this policy. In addition, FNDE bidding process also represented an aim. As part of its process, public audiences happened with the private sector, for discussing the technical aspects for rural transportation. This also supported to craft a new business in Brazilian market.
So far, the policy showed that, until October of 2009, 1,316 municipalities joined this (24% of Brazilian cities). Among those, 3,212 school buses were acquired – 1,296 by BNDES funding; 673 via FNDE funding support; and 1,243 with their own resources. It is estimated 100,000 students of rural areas are directed benefited from this policy. These numbers are continuously updated, in a real time mode, monitored by FNDE.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
“Caminho da Escola” was suggested by the Technology and Administration Department – DIRAT, FNDE department in charge for biddings. With its experience and expertise in this field, DIRAT staff also conducted the process, composed of a market study, public audience, the bidding itself, and the monitoring, beyond always consulting the Coordination for School Support, from the Educational Policies Department of FNDE – CGAME/DIRAE, and the Executive Secretariat of the Ministry of Education, a vice-ministry cabinet.
For the study market, DIRAT/FNDE hired the consultancy of Fundação Getúlio Vargas – FGV, a well-known research center for public administration and economy. CEFTRU, a research group about transport, from the University of Brasília, also proposed new measures for rural transportation vehicles. BNDES was another important partner of the process. Understanding the necessities of deprived cities, it proposed quite fine financial conditions for purchasing school vehicles. The Ministry of Finances also took part on the policy, once fiscal release act was issued by its agencies, as well as the Ministry of Cities, by regulating school buses.
The next stage – the public audience, counted with the private sector contribution. Volkswagen, and Marco Polo (one of the leaders for vehicles´ pieces in Latin America) were there. Also, the bidding, an electronic one (with its result available in www.comprasnet.gov.br, under number 53/2007), allowed the enrollment of any Brazilian municipality and state interested in joining its conditions.
For controlling the vehicles´ quality, DIRAT contacted the National Institute of Metrology, Standardization and Industrial Quality (INMETRO). Therefore, all of the buses go through a check list, in order to see if all the requirements, disposed on the bidding, were executed. This also helped in the standardization of those buses. And, finally, there are the rural students, able to go to school in a suitable and secure way.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
As written, one of the phases considered necessary for the policy was a market study. When a research like this is about to be made, FNDE has to consider that the cheapest price does not mean the best choice. Technical issues are definitely considered into it. FGV took this into account, as well as economic aspects (Brazilian economy and industry performance, considering market share, area of influence, production numbers, logistics, vehicles´ use, and conditions for it). This is a central point for getting the best conditions for a governmental bidding. And, researching the industry, let FNDE knew how to deal better with it, as well which are its stakeholders. Consequently, this helped to support the policy, in terms of market validation. FGV also analyzed how the bidding process would be, beyond pay processes, and competitiveness impacts.
FNDE itself worked on the bidding process. But it presented a strategy where it was the conductor, and not necessarily the buyer. In order to have such a process well held up, this agency, with the information obtained from the study market, wrote in its bidding toll the minimum necessary specifications. This is a crucial item for a well done bidding, in terms of the assurance of a proper buying and process integrity, available to everyone. As a result, FNDE carried on an electronic bidding, easily reachable by Internet to every place – which is significantly helpful for those towns far from the main economic centers. Moreover, an electronic bidding is easy to follow, as well as transparent. The bidding conductor is also able to send public warnings about the process to every participant of it, on real time.
After the price offers, and the conductor decisions, a document, showing all the process is made available in ComprasNet website. This process was not only transparent, but also efficient – as written, the expectations about prices shown in the market study got down, on average, 30%. Finally, as a conclusion point of this policy, FNDE got an agreement with INMETRO, in order to control every school bus ready to be delivered to the cities – and their schools. In consequence, no one single school vehicle can be sent without this accreditation and seal, provided yet during in the assembly line. This practice also sets up parameters to those fleet.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
This intricate policy has some key points. One of this is its study market, together with the public audience. This definitely made easier the dialogue between FNDE and the private sector, as well as this helped to make adaptations for rural school buses achievable.
Another relevant point was the work of INMETRO, connected with the policy, in addition to the joint effort with the Ministry of Finances. The coordination of all of the stakeholders involved, done by DIRAT/FNDE, was certainly a central element for making this policy occurs.
The bidding process was also a very important part of PCE. Its process, focused on conducting, and not on direct buying, showed to states and municipalities a new way of working together, in a federative way.
The timeline of the process follows: in March 2007, there was the request from the Ministry of Education to FNDE about a rural transportation policy for renovating and broadening its fleet; requests from FNDE to many stakeholders, among them, the Ministry of Cities, BNDES, the Ministry of Finances for regulation issues; and publishing of PCE policy.
From April until October 2007, issues of acts relating to regulation aspects, and fiscal releasing concerning rural school vehicles. In July, came a new governmental budget line for next year, about rural transportation, more affluent than that of PNTE.
In September 2007, there was the issue of PCE study market final report; in the next month, October, the work about technical specifications, made together with INMETRO, was concluded.
In November 2007, public audiences were made, for consolidating. The electronic bidding happened on Dec 10, 2007, under no. 53/2007, with its results available on www.comprasnet.gov.br website. In the same month, the industry players sent their price proposal, and, from April 2008, the assembly line started to produce the buses, with INMETRO monitoring along that. The deliverance of those vehicles to rural schools started from June 2008 on. Finally, in January 2009, another PCE electronic bidding happened, going on with the process.

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
As in any new course of action, some obstacles were found. However, those were overcome by the strong support given by the stakeholders, along with FNDE determination in having a solution for school transportation in rural areas.
One of this had to do with all of the bureaucracy needed for a loan, usually given on an unreachable level for many cities in Brazil. FNDE, with BNDES, worked in a sense of dealing with accredited financial institutions, in order to explain to the financial cities departments. This initiative had actually better results than expected, once many cities got their first approval about public financing, in a timely period.
A transparent process also represented a solution, especially regarding the industry expectations. Once there were equipments not often produced, it was not easy to encourage the private sector to start producing this. Nowadays, on the other hand, this industry found out a new business line.
The bidding itself was other point. This was crucial for the policy achievement and success. Once this did not represent a necessarily a buy, this new model was a difficult issue to be understood by its partners, in the process. However, the model made it, due to a strong publicization by FNDE about the process. This was another barrier defeated. The buses acquired by FNDE represent indeed the smallest fraction – 21% of the whole buying, until October 2009. It is worth to state the buses bought by FNDE went to those cities that had the worst educational conditions, following the results of a synthetic educational index, built by the Ministry of Education – and, extensively publicized, too.

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
First of all, DIRAT/FNDE, together with the Executive Secretariat of the Ministry of Education, started a process for making the final price for rural student transportation cheaper. On the same time, they were contacting BNDES, for having a special funding line for the policy. The development agency was very receptive, and offered, quite fast, a R$ 300 million funding line, that even, due to good results, doubled.
FNDE also struggled for having some public budget money, for supporting issues of the policy – like a direct buying, for instance, for those municipalities that actually could not buy the bus, and among those with the worst educational indexes. The National Congress approved in May 2008 a R$ 90 million line for FNDE, for the policy.
The human resources core, on their turn, were those from DIRAT staff, besides the FNDE Transportation Department – around 10 people. However, it is valuable of mentioning the effort of civil servants from other governmental agencies, that worked hard with a tight calendar, too.
The technical resources came from FNDE IT Department, that provided a monitoring system, as well as those from the University of Brasília, one of the central partners during this process.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
Definitely, yes. “Caminho da Escola” is a policy already on its second bidding, that happened on Jan 27, 2009. The acts and regulations issued, that put the final price down in 30%, in average, helped to launch this polity. PCE also offers more school buses models. Buses tires are closer now, for instance, and this helps them to get out of mud, in country roads. There are also access facilities, with a wheel chair for a student with special needs. And the vehicle door will be wider, then: its width will go from 80 cm to 95 cm. There is furthermore GPS, which gives even safer transport conditions for the students, as well as this will make possible to control the route, and its fuel consumption, among other subjects. PCE created a new window of opportunity for business.
Also, the possibility of this bidding process could be replicated to other big buying processes. And it is worth to mention those all ended up in an efficient result. There happened already a big buying, in the same model, following the same steps, for school furniture, on June 10, 2009, and for basic medication for university hospitals, on May 27, 2009. Additionally, more biddings like those are on their way: it is about to be released the process for tumor medication, for university hospitals, as well. Not only counting that “Caminho da Escola” is on its second edition is even broadening its transportation concepts. Right now, there is a group study, conducted by DIRAT, for school vessels, especially for the Amazonian area. And, for distances up to 10 Kilometers, “Caminho da Escola” started a market study for school bicycles. This will be a different model than those offered in the market. It will have GPS, for instance, for student safety.
And, finally, the establishment of agreements with different agencies aided FNDE to have this programme settled in a official and institutional way. Its coordination was certainly one of the key issues of this process, able to conduct the bidding, altogether with the policy concerns.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
“Caminho da Escola” is a policy already on its second bidding. This offers more bus models now, with even more proper equipments than on its first issue. For instance, there is now GPS, which gives even a safer transport for the students.
Policy coordination was certainly another goal achieved. Due to this policy, FNDE got agreements and work groups with agencies like INMETRO, as well as other federative agencies. Since then, INMETRO and FNDE are working together, about standardization issues. One of this has to do with school furniture, demanded to be ergonomic to students.
The electronic bidding was efficient, thanks to a proper market study, and this process showed a federative way of working, too. And, if in 2006, FNDE did not have a comprehensible strategy for school transport, not only even considering budget resources, it has today almost R$ 1 billion for this policy. Concluding, it is expected, via this programme, to have the Brazilian school bus fleet renewed.
The financial process was also a key point. With BNDES as the funding agency, the money lent to municipalities went straight from it to the industry – which means less bureaucracy, for example. And monitoring made by INMETRO provided a warranty that these vehicles are in adequate conditions. Also, the coordination with all of these stakeholders generate a Permanent Work Group, for school transportation.
Also, the possibility of this bidding process could be replicated to other big buying processes, like stated before. And this all ended up in an efficient process. The possibility of having just a big one and national bidding, instead of many, made this process accessible to every federate agent, not only considering this generated a cooperative environment Therefore, FNDE, that only had policies that were just panacea, really could provide a way of buying something expensive, proper, and safe to students.

Contact Information

Institution Name:   Fundo Nacional de Desenvolvimento da Educação
Institution Type:   Government Agency  
Contact Person:   José Freitas
Title:   Technology and Administrator Manager - DIRAT  
Telephone/ Fax:   55 61 20224803
Institution's / Project's Website:   55 61 20224188
E-mail:   jose.freitas@fnde.gov.br  
Address:   SBS 2 Bl F 13th Floor
Postal Code:   70070-929
City:   Brasília
State/Province:   DF
Country:   Brazil

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