International Financial Corporation and University of Medicine Phạm Ngọc Thạch signed an advisory services agreement on Friday to mobilise private investment in the university’s training and healthcare facility. Photo edu2review.com

HCM CITY — International Financial Corporation (IFC) , a member of the World Bank Group and University of Medicine Phạm Ngọc Thạch signed an advisory services agreement last Friday to mobilise private investment in the university’s training and healthcare facility.

The facility, which will comprise a human capital training centre, a polyclinic, and a day care centre, is likely to serve around 300,000 patients a year.

As part of the agreement, HCM 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.

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.

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 Việt Nam’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.

“HCM City’s healthcare needs are critical due to rapid urbanisation and a growing population. However, we cannot cater to these needs effectively by relying solely on public budget,” said Dr. Ngô Minh Xuân, Rector of University of Medicine Phạm Ngọc Thạch.

“We are certain that IFC’s support will help attract private investors to deliver the best possible solutions efficiently and transparently.” 

HCM City is the country’s economic and financial hub and home to over 10 million inhabitants. 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.

 “With extensive global experience and expertise in PPP advisory work, IFC is well-positioned to assist the university and HCM 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 Việt Nam, Cambodia and Lao PDR.  — VNS