23:49 (GMT +7) - Friday 18/10/2019

Vietnam Today

IFC to assist HCMC to develop healthcare facility

Released at: 12:43, 06/04/2019

IFC to assist HCMC to develop healthcare facility

Photo: Khanh Chi (VET)

Advisory services agreement to be implemented through public-private partnership form.

by Hong Nhung

The IFC, a member of the World Bank Group, and the University of Medicine Pham Ngoc Thach signed an advisory services agreement on April 5 to mobilize private investment in the university’s training and healthcare facility.

As part of the agreement, Ho Chi Minh City’s medical university has appointed the IFC as the lead advisor to design a public-private partnership (PPP) transaction for a training and outpatient center on its premises. The facility, which will comprise a human capital training center, a polyclinic, and a day care center, is likely to serve around 300,000 patients a year. While the private partner will be responsible for the construction of the facilities, the clinical operations and training will be delivered by the university, and both sides will jointly operate the facilities.

In partnership with Hungary, over the next six months the IFC will undertake due diligence and prepare a transaction structure report with available options in line with international practices and applicable Vietnamese laws and regulations. A competitive public tender will follow in late 2019 and the bid award is likely to be announced in mid-2020.

“Ho Chi Minh City’s healthcare needs are critical due to rapid urbanization and a growing population,” said Dr. Ngo Minh Xuan, Rector of the University of Medicine Pham Ngoc Thach. “However, we cannot cater to these needs effectively and timely by relying solely on the State budget. We are certain that the IFC’s support will help bring in private investors to deliver the best possible solutions efficiently and transparently.”

One of the fastest-growing cities in Asia, Ho Chi Minh City is Vietnam’s economic and financial hub and home to over 10 million inhabitants. However, rapid economic growth and urbanization have increased demand for the city’s healthcare services, with more than 30 million outpatient visits and treatments in 2018, accounting for a quarter of the total number of visits nationwide.

“We are happy to help the University of Medicine Pham Ngoc Thach attract private investments to bolster its education and healthcare services,” said Mr. Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Laos. “With extensive global experience and expertise in PPP advisory work, the IFC is well-positioned to assist the university and Ho Chi Minh City to develop projects that support its priorities across infrastructure and social sectors. This will save public resources and expand the city’s access to quality services.”

Through financing and advisory services, the IFC has been helping national and municipal governments attract qualified private sector partners for over 60 years. Over the last decade, the IFC’s PPP Transaction Advisory team has generated nearly $22 billion in private investment in infrastructure in developing countries, and supported governments in improving essential services such as power, transportation, healthcare, water, and sanitation for 98 million people.

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Vietnam HR Awards Forum 2019 set for November in HCMC
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