Cairo, Egypt, April 30, 2012—
IFC, a member of the World Bank Group, is helping the government of Egypt establish two university hospitals in Alexandria via private sector participation, part of an effort to improve healthcare services in the Arab World’s most populous country.
Under a new agreement, Alexandria University and Bareeq Hospitals Company, a consortium comprising Bareeq Capital, Detac, G4S and Siemens, will combine forces to finance, design and construct the Smouha and Mowassat hospitals in Alexandria. IFC advised the Public Private Partnership (PPP) Unit of the Ministry of Finance on the agreement. Smouha Maternity University Hospital is planned as a 200-bed gynecology and obstetrics center with a blood bank. The Mowassat Specialized University Hospital will be a 224-bed facility providing neurosurgery, urology and nephrology services.
"We have been actively working to collaborate with the private sector to meet the growing infrastructure needs of Egypt," said Atter Hannoura, Director of the PPP Central Unit. "We are now happy to sign the second PPP project following the New Cairo Wastewater treatment plant, which also received advisory support from IFC. Despite the current economic challenges, this signing demonstrates that investors have confidence in Egyptian PPPs and the country in general."
Osama Ibrahim Al-Sayed Ahmad, Alexandria University President, said, “This agreement will expand access to high quality health services to thousands of Egyptians."
Bareeq will finance, design, construct, furnish, equip, maintain, and provide non-clinical facility services for the two new hospitals and the blood bank for 20 years, after which management responsibility and ownership will transfer to the government of Egypt.
“This project demonstrates that the private sector can play an important role in extending high quality basic services to those who need it most,” said Luke Haggarty, IFC's head of Advisory Services in the Middle East and North Africa.
IFC has been advising the government of Egypt on the implementation of PPP transactions since 2006 through a memorandum of understanding with the Ministry of Finance. Since then, the ministry has sought to pilot such projects in the water and sanitation, transport, as well as education and health sectors.
This initiative is part of IFC’s efforts in the Middle East and North Africa to promote economic development by supporting the private sector and encouraging government and business to work together on infrastructure projects.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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