Construction and operation of the multi-type hospital for 300 beds in Ust-Kamenogorsk

Project objective:

• Improvement of quality and accessibility of the specialized and emergency medical care to the town population, including neurosurgical, urological, traumatological, surgical, gynecological and therapy; improvement of quality and accessibility of the blood-stroke center;

• Improvement of quality of the emergency medical care delivery to the population at the pre-hospital phase;

• Providing of the high-quality medical services.

Place of the project implementation:

Ust-Kamenogorsk, East Kazakhstan Region, 19th micro district.

Type of the Contract:

Scheme of BTO concession (build-transfer-operation).

Project implementation period:

• Construction period: 2015-2017;

• Construction period is equal to approximately 2 years;

• Concession period: 30 years.

Type of activity:

Medical and nonmedical services.

Financial and economic indicators of a project:

• Cost of a project: 14,4 billion KZT (77 million US Dollars);

• Project capacity: 300 beds;

• Services sales markets: adult population of Ust-Kamenogorsk. Multi-type hospital is constructed instead of the existing Municipal hospital №2.

Measures of the state support:

• recovery (compensation) of the Concessioner’s investment expenses at the rate of 100% against the cost of concession project during 10 years in equal shares;

• granting of the plot of land of temporary use;

• carrying out of engineering communications;

• providing of guaranteed free medical care.

Indicators of the project efficiency:

• Payback period: 15,5 years;

• Net Present Value (NPV): 1050 million KZT;

• Internal Rate of Return (IRR): 10,06 %.

Form of the Investor’s participation in the project:

Investments to the project should be at the rate of 10% of own funds and 90% of borrowed funds in relation to the cost of concession project or 100% of own funds.

Initiator of the project:

Akimat of East Kazakhstan Region (Akimat – is a regional body of the executive power in the Republic of Kazakhstan).

Available package of documents:

Technical and Economic Assessment (Feasibility Study) of the concession project is available.

Expected result:

• accessibility of the specialized and emergency medical care to the town population and adjacent village territories;

• creation of the necessary conditions for delivery of medical care in accordance with the sanitary and fire-extinguishing requirements and regulations;

• decrease of risk of the hospital-acquired infection origination in the conditions of day and night clinic;

• decrease of rate of the population’s total morbidity;

• reduction of rate of the road and home injuries;

• decrease of the number of cases of the advanced surgical pathology.

Requirements to the Investors:

For the participation in the tender for selection of Concessioner, the potential Concessioner shall conform to the following qualifying requirements:

1) Potential Concessioner shall have necessary financial and material resources for fulfillment of obligations under the concession contract;

2) Potential Concessioner shall be payable, not to be subject to the liquidation, his property shall not to be arrested, his financial and economic activities shall not to be stopped in accordance with the legislation of the Republic of Kazakhstan;

3) Potential Concessioner shall not to be brought to responsibility for non-fulfillment or improper fulfillment of his obligations under concession contracts concluded during the last three years on the basis of decision of the court entered to the legal force;

4) Potential Concessioner shall have owned capital equal to not less than 10 (ten) percent against cost of the offered concession project, or to provide bank guarantee to the amount equal to not less than 10 (ten) percent against cost of the offered concession project;

5) Potential Concessioner shall have financial reporting for the previous two comprehensive financial years, confirmed by the audit report.