International Finance Corporation (IFC), a member of the World Bank Group, and University of Medicine Pham Ngoc Thach signed an advisory services agreement today to mobilize private investment in the university’s training and healthcare facility.
Overview of the signing ceremony.
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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, IFC will undertake due diligence and prepare a transaction structure report with available options in line with international practices and Vietnam’s applicable laws and regulations. The public competitive 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. However, we cannot cater to these needs effectively and timely by relying solely on public budget,” said Dr. Ngo Minh Xuan, rector of University of Medicine Pham Ngoc Thach.
As one of the fastest growing cities in Asia, Ho Chi Minh City is the country’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.
“With extensive global experience and expertise in PPP advisory work, 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,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao PDR.
