PPP projects in Belarus
Reconstruction of complex of buildings of health care facility “City clinical hospital №3″ in Grodno under “Grodno regional clinical Oncology dispensary” (as a separate legal entity)
Location of the object: Grodno
Project initiator: Grodno Regional Executive Commitee
Gist a project
The project involves the reconstruction of the existing complex of buildings, provision with modern medical equipment, enlargement of the complex of buildings through the construction of new facilities, functional and technical maintenance of the complex.
|Reconstruction of the existing complex of buildings + Construction of additional facilities||Provision with modern medical equipment + Technical and functional service for the entire duration of the PPP agreement|
Estimated PPP model
«Build-Lease-Operation-Transfer». Private partner will be authorized to finance, build and operate facilities in the framework of the project as well as to collect lease payments during lease perion.
Preliminary capital expenditure: 100 million U.S. dollars. The financial model, sources of financing and return of investment will be determined at the stage of preparing the justification of value for money (best price / performance ratio and quality) within the framework of the feasibility study of the project.
Advantages of PPP for the state
- Attracting private resources for the project realization in terms of the lack of budget financing - total cost of the project does not allow to realize it using only budget resources which are very limited.
- Long-term implementation of the project - part of the risks is in the area of private partner's responsibility during the term of the agreement.
- Socio-economic feasibility of the project - increase of the quality of medical services, introduction of advanced methods of treatment of oncological diseases, increase in the duration and quality of life of cancer patients, creation of a new work places.
Advantages of PPP for business
- Stable and long-term return on invested capital.
- Enhancement of the company's image.
- Building good credit history and growth of the credit rating.