PUPA: INNOVATIVE FINANCING FOR EARLY CHILDHOOD DEVELOPMENT
The purpose of the project is to provide a US$3 million secured loan from the Opportunities for the Majority (OMJ) Financing Facility to launch PUPA (PUPA Empreendimentos Educacionais e Representação LTDA), a new social business developed by ZOOM Editora (Zoom Editora Educational LTDA). ZOOM Editora is the exclusive representative of LEGO Education in Brazil. The PUPA program will address one of the most important gaps in educational services in Brazil: the lack of quality Early Childhood Education. There are currently an estimated 10 million low-income children in Brazil ages 0-6 who are not in daycare or preschool. PUPA will provide educational materials to children aged 0-6 years old, and training to their parents and caregivers, from low-income communities. The new social business aims to offer a distinctive educational program and tools that will enable parents and informal caregivers to provide ageappropriate educational activities for children in formal or informal care settings.

The PUPA program will provide easy-to-follow educational play activities through colorful magazines, LEGO toys, and audio-visual aids. PUPA will also provide training for parents and caregivers in Early Childhood Education techniques, as well as in the use of the creative play materials. PUPA will contribute to the improvement of Early Childhood Education for children who do not have access to formal care centers and whose parents, relatives and informal caregivers lack the knowledge or tools to stimulate their cognitive development. The PUPA product will be sold both to parents and informal caregivers, through a network of Non-
Governmental Organizations (NGOs) partners and micro-franchisees.

The NGOs will be local non-profit organizations or foundations involved in early childhood development in low-income communities. Micro-franchisees, self-employed women, will be responsible for signing up customers, helping them select the appropriate PUPA packages for their children, doing ¿last-mile delivery¿ of PUPA packets, checking in regularly with customers to ensure that the PUPA program is being implemented well, and conducting mini-surveys to track social performance indicators. PUPA will deliver early childhood development training to
parents and caregivers, given the central importance of training to the effectiveness of the overall program.

The OMJ project will provide needed seed capital to enable PUPA to reach scale and become financially successful and sustainable. In the seven-year tenor of the loan, PUPA is seeking to become not only a developer and distributor of Early Childhood Education products for the Base of the Pyramid, but a key partner in low-income communities by improving the skills and competencies of over 56,000 caregivers, strengthening the role of NGOs, and providing training and employment opportunities for over 1,400 women microfranchisees. Finally, PUPA, through its educational kits and improved Early Childhood Education services seeks to improve and measure socio-emotional development and readiness to learn of over 224,000 children across Brazil.

Project Detail

Country

Brazil

Project Number

BR-L1313

Approval Date

December 8, 2011

Project Status

Closed

Project Type

Loan Operation

Sector

EDUCATION

Subsector

PRIMARY EDUCATION

Lending Instrument

BID Invest

Lending Instrument Code

IIC

Modality

PSL (Private Sector Loan)

Facility Type

-

Environmental and Social Impact Category (ESIC)

-

Total Cost

USD 12,000,000.00

Country Counterpart Financing

USD 9,000,000.00

Original Amount Approved

USD 3,000,000.00
Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
2670A/OC-BR Non-Sovereign Guaranteed USD - United States Dollar Ordinary Capital Private Sector Financing
Operation Number 2670A/OC-BR
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Private Sector Financing

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 Implementation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-947279092-28995
Agreement - Financial Closing - SCF
PUPA_ Innovative Financing for Early Childhood Development [37377132].PDF
Aug. 04, 2014
English
https://www.iadb.org/document.cfm?id=EZSHARE-947279092-28996
Agreement - Financial Closing - SCF
PUPA_ Financiamiento Innovador para el Desarrollo en la Primera Infancia [37377168].PDF
Aug. 04, 2014
Spanish
https://www.iadb.org/document.cfm?id=EZSHARE-947279092-28997
Agreement - Financial Closing - SCF
Brazil_ Loan 2670A_OC-BR to PUPA Empreendimentos Educacionais e Representação Ltda_ for Innovative Financing for [36504637].PDF
May. 16, 2014
English
https://www.iadb.org/document.cfm?id=EZSHARE-947279092-28998
Agreement - Financial Closing - SCF
Brasil_ Préstamo 2670A_OC-BR a PUPA Empreendimentos Educacionais e Representação Ltda_ para Financiamiento Innov [36505430].PDF
May. 16, 2014
Spanish
 Preparation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-947279092-28994
Environmental and Social Management Reports
PUPA ESMR [36505601].PDF
Nov. 04, 2011
English
https://www.iadb.org/document.cfm?id=EZSHARE-581262588-2
Project Abstract
PUPA Project Abstract [36505649].PDF
Jan. 11, 2012
English
https://www.iadb.org/document.cfm?id=EZSHARE-947279092-28993
Environmental and Social Strategies
PUPA ESS [36505581].PDF
Nov. 04, 2011
English

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