IFC has signed an agreement with the government of Khyber Pakhtunkhwa (GoKP), a province of Pakistan, to help arrange a public-private partnership (PPP) for building a hospital with up to 500 beds in its capital Peshawar.
The provincial capital’s population has surged by 52% over the last twenty years, thereby increasing pressure on the existing healthcare facilities.
As per the agreement, IFC, a member of The World Bank Group , will support the provincial government in structuring the PPP deal.
IFC will also aid the government in holding a transparent, competitive bidding process to choose a private sector developer and operator for the hospital to provide tertiary care.
Khyber Pakhtunkhwa (KP) Chief Minister Mahmood Khan said: “The new hospital is expected to serve over 150,000 people annually and will be Pakistan’s first greenfield PPP in the healthcare sector. We believe it will serve as a model transaction allowing us to replicate the project for other much needed healthcare facilities,” said, Chief Minister,.
KP Finance and Health Minister Taimur Khan Jhagra said: “This project is a monumental step towards fulfilling GoKP’s promise of increasing accessibility to quality tertiary healthcare across the province. It will demonstrate the ability of leveraging the Sehat Sahulat card to attract private sector investment in the construction and operation of tertiary care facilities.”
Peshawar is the sixth largest city in the country with a population of around two million and represents almost a third of total hospital admissions in the province.
The new PPP will complement a $400m World Bank-sponsored project aimed at bolstering the healthcare system of the province.
IFC country manager for Pakistan and Afghanistan Zeeshan Sheikh said: “Quality, affordable and accessible healthcare is critical for Pakistan’s economic growth and development.
“Leveraging the private sector’s capital and know-how will help spur development in this key sector, improving the quality of service for patients and providing a financially sustainable model for scaling up investment.”