Construction and operation of the children’s municipal hospital for 200 beds in Semey (East Kazakhstan Region)

Project objective:

• Improvement of the children’s health in Semey;

• Increase of the scope of providing of the qualified specialized medical care to children of Semey.

Project goal:

Construction and operation of the children’s municipal hospital for 200 beds in Semey on the basis on the basis of public-private partnership (concession).

Place of the project implementation:

Semey, East Kazakhstan Region, Michurin Street

Type of the Contract:

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

Financing structure:

Implementation of the project is supposed to carry out by means of private investments attraction, i. e at the expense of the Concessioner’s funds, including 10% - own funds, 90% - borrowed funds.

Project implementation period:

• Construction period: 2015-2017;

• Construction period is equal to approximately 2 years;

• Concession period: 30 years.

Type of activity:

Medical services.

Financial and economic indicators of a project:

• Cost of a project: 7,0 billion KZT (37,8 million US Dollars);

• Project capacity: 200 beds;

• Services sales markets: Children of Semey. There is no public children’s hospital in Semey. The existing private hospital is not conforming to the requirements of SanPin (SanPin – Public Health Regulations).

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: 17,5 years;

• Net Present Value (NPV): 2 139,2 million KZT;

• Internal Rate of Return (IRR): 12 %.

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.

Expected result:

• aggregating of all types of the children’s highly-specialized medical care in one day and night clinic equipped with the modern diagnostic and therapeutic equipment;

• opening of the new hospital departments of radiodiagnosis, computerized tomography, X-ray radiography, determination of functional diagnostics and medical rehabilitation;

• contagious isolation ward, department of surgery (clean surgery, contaminated neurosurgery), somatic department (pulmonology, neurology, toxicology, nephrology).

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.