Carey advises Bien Público on second social impact contract
Carey has advised Corporación Bien Público in the structuring and implementation of the second Social Impact Contract (CIS) in Chile involving the participation of public and private entities, aimed at the implementation of an education programme.
This transaction was signed on 2 August for USD $1 million. The project seeks to solve a complex social problem such as the low levels of reading comprehension and writing skills of students in certain schools in Chile and to improve their literacy levels.
The consultancy involved adapting the structure of the UK’s Social Impact Contracts to the Chilean reality, which does not have legal facilities in its jurisdiction that encourage the implementation of this type of mechanism. This required the design of a novel legal structure that would allow the project to function at different levels, from financing, coordination, evaluation and finally, direct implementation. The project required the preparation of complex contracts with interconnected structures, a practical approach and attractive financial results.
It was also necessary to coordinate and negotiate with entities of different nature, including in this case, for the first time, a publicly traded company in Chile and a municipality (Municipality of Puente Alto) to fulfil in a single structure all the interests and legal conditions of the entities involved, such as the Certification of Educational Technical Assistance required by the Ministry of Education.
Corporación Bien Público participated in the project as coordinator and Falabella Retail, Municipality of Puente Alto, Fundación de Beneficencia Pública Olivo (advised by Peralta Abogados), Corporación Ermita de San Antonio, Fundación Angelini and Fundación San Carlos de Maipo as payers of results. The “Fondo de Inversión con Impacto en Educación” managed by Larraín Vial Asset Management (advised by Barros & Errázuriz) participated as investors in the project; Colegium Servicios Profesionales Limitada, as independent evaluator of the results generated; and Fundación Social Astoreca, Fundación Educacional Barnechea, Corporación de la Educación Aptus Chile and Fundación Educacional Crecer con Todos participated as service providers of the programme.
Barros & Errázuriz’s team included associates Francisco Vial and Emilia Bórquez.
Peralta Abogados’ team included partner Roberto Peralta Martínez and associate María Luisa Bulnes.
Carey’s team was led by partner Francisco Guzmán (pictured), assisted by partner Manuel José Garcés, and associates Carolina Miller, Sofía Beckdorf, Benjamín Echeverría, Diego Hormazábal and Elias Mohor.
