Expectation set high for health PPP

The Public Private Partnership Directorate General (PPP DG) expects the recently floated expression of interest (EOI) on the health PPP to be accomplished in a fast track manner owing to the high demand of the private sector.
On July 8, PPP DG issued the EOI for an integrated diagnostic center (IDC) for interested partners who want to invest in the health sector for ten project years with the government.
Tilahun Tadesse, Director General of PPP DG, which is under the Ministry of Finance, said that the EOI was issued as per the request of the Ministry of Health and the approval of PPP Board of Directors, combined by directors; seven from public and two from the private sector.
The Director General told Capital that there is high demand to invest on the IDC through PPP, “due to that we estimated that the process will be concluded on a fast track.”
He said that potential investors have been expressing their interest through different forms.
He assured that the process would be concluded in the budget year even under a very short period of time.
As per the plan, a single company will be selected to invest with the government.
The EOI document said that the government has attained remarkable success in the health care system. “However, epidemiologic shift and the growing demand for quality and affordable curative health service have remained elusive in the past; hence government remains committed to its objective of increasing access to quality, cost effective, and timely diagnostic services for all citizens through the exploration of incentive service delivery models like PPP.”
The EOI was drafted with the aim of assessing the interest of the private sector’s participation on the health sector.
The upcoming competitive bid may consider the investors to invest on services to provide on laboratory, pathology and imagining service in the capital through building (installing public health facilities), financing, operating and maintaining and transferring modality.
The EOI request document stated that the diagnostic PPP envisions the development of integrated diagnostic center (IDC) to provide quality and uninterrupted laboratory, pathology and imagining service in Addis Ababa.
“The IDC will be based in one of the public hospitals in Addis Ababa,” it said, adding, “Patients from nearby health facilities outside of the capital and private facilities will also benefit from the project.”
The private party is responsible to renovate the premises, install diagnostic equipment and information systems, operate, and maintain as well as establish sample and patient transport system with the public health facilities to optimize the efficiency of the IDC.
The EOI submission deadline is scheduled till July 25 followed by an announcement for request of pre qualification (RFQ) that will be on August 1. The RFQ submission will then be on September 20.
The first health sector PPP project, Diagnostic service, tender is on-air. Both local international companies are invited to participate.
It said that the project will be implemented for 10 years and is expected to bring new capacities, technologies, skills and efficiencies.
On the budget year, other PPP invitation is signaled to occur.
After massive study and legal document development through MoF, the government enacted the PPP 1076/2018 proclamation that makes it formalized for private sector involvement through public projects for the benefit of both sides. Under the PPP; efficiency on project handling, innovation, and knowledge transfer and using alternative financing to reduce government project financing has been stated as the pillars.
So far until last year, 23 projects have been identified under PPP from over 100 proposals, while from the selected project some shall not be executed under PPP as per the recommendation that came from detailed studies. Roads, energy, housing, and health are included on the selected projects.
Except in some special cases, the PPP project threshold is USD 50 million and above.
As per the government’s projection, 25 percent of all projects will be covered by PPP. In the ten year development plan the government has targeted to conduct huge projects through PPP.