Washington, D.C., March 6, 2012
—An IFC-supported public-private partnership project that is improving health care for thousands of patients in Mexico has received the Latin American PPP Deal of the Year 2011 award from ProjectFinance magazine.
IFC, a member of the World Bank Group, served as financial advisor to the Tlalnepantla Hospital project, which received the award. The award was announced last week at the magazine’s Deals of the Year Dinner for the Americas in New York.
ProjectFinance said the PPP is considered "a milestone, insofar as this is the first time that pension funds have invested in a Mexican PPP project from the outset as opposed to at the beginning of operations.” The project also made its mark for being the “first social infrastructure project in Mexico that is required to have a silver LEED certificate for both the hospital’s construction and operations,” as outlined by IFC’s client, the Social Security Institute of the State of Mexico.
"This project will significantly improve access to health services in needed areas as well as contribute to reducing carbon dioxide emissions,” said Richard Cabello, who oversees IFC’s PPP activities in Latin America and the Caribbean. “In addition, its solid transaction structure has helped mobilized pension-funds financing, which is ideal for long-term infrastructure contracts."
The project will replace the city of Tlalnepantla’s outdated hospital with a new 120-bed facility, and will provide medical services to more than 6,000 in-patients and more than 20,000 out-patients each year. It will also improve services while establishing a better business model for health care in the state of Mexico.
IFC advised the Social Security Institute on the structure and implementation of a PPP for two new public hospitals in Toluca and Tlalnepantla. IFC also introduced new “pay-for-performance” funding for hospital providers to improve the state health insurer’s financial position and secure better results for patients.
The transaction also includes performance-based payments that will improve service quality and the financial position of the state’s Social Security Institute through a 30 percent hospital cost reduction. The hospital’s LEED certification is expected to result in energy savings of at least 20 percent, as compared to a traditional hospital in Mexico.
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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