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|The signing ceremony between IFC and University of Medicine Pham Ngoc Thach today|
As part of the agreement, Ho Chi Minh City’s medical university has appointed IFC as the lead advisor to design a public-private partnership (PPP) transaction for a training and outpatient centre on its premises. The facility, which will comprise of a human capital training centre, a polyclinic, and a day care centre, 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 urbanisation and a growing population. However, we cannot cater to these needs effectively and timely by relying solely on the public budget,” said Dr Ngo Minh Xuan, rector of University of Medicine Pham Ngoc Thach. “We are certain that IFC’s support will help crowd 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 the country’s economic and financial hub and home to over 10 million inhabitants. However, rapid economic growth and urbanisation 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 University of Medicine Pham Ngoc Thach to attract private investment to bolster its education and healthcare services,” said Kyle Kelhofer, IFC country manager for Vietnam, Cambodia, and Lao PDR. “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 the infrastructure and social sectors. This will save public resources and expand the city’s access to quality services.”
Through financing and advisory services, IFC has been helping national and municipal governments attract qualified private sector partners for over 60 years. Over the last decade, 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.