IFC to Strengthen City of Lviv’s Health-Care Sector through Public-Private Partnerships in Ukraine

​Lviv, Ukraine, June 9, 2021—In a bid to increase private sector participation in health, as part of the government's efforts to improve health-care infrastructure and quality of services, IFC, the state Public-Private Partnership Agency, and the Lviv City Council today signed a Memorandum of Understanding (MoU). The aim is to help Ukraine attract private sector investment and expertise through public-private partnership (PPP) projects, promoting innovative technologies and creating a robust health-care system.

Under the MoU, IFC will work with the PPP Agency and the City Council to assess potential health PPP projects that can be implemented with IFC's transaction advisory support. The projects will be aligned with municipal health-care reforms and the related investment strategy with a focus on attracting and building sustainable partnerships with local and international investors.

According to the World Health Organization, Ukraine lags behind European Union countries in terms of life expectancy despite spending a fair amount of its per capita gross domestic product (GDP) on health. A highly fragmented hospital network, with many of the existing public hospitals requiring major reconstruction, contributes to cost inefficiencies and impacts quality of care.

To address this challenge and resolve the issue of long-standing underinvestment in the sector, the local authorities launched a municipal health-care reform—as part of the National Program of State Guarantees introduced in 2020—making health care accessible to all citizens through optimization of the hospital network and improving quality of care.

"We welcome IFC's support to help medical institutions in Lviv reorganize and reinvest. Experts have prepared a medical reform based on the creation of three "territorial medical unions". This is the second stage of the reform following the creation of the medical services market. Involving international financial institutions and experts is important to create a comprehensive strategy," said Andriy Sadoviy, theMayor of Lviv.

"Building a health-care system that can efficiently respond to pandemics is key to ensuring resilient growth in the post-COVID era," said Jason Pellmar, IFC Regional Manager for Ukraine, Belarus, and Moldova. "We remain committed to supporting Ukraine in its efforts to increase access to affordable and quality health care. Well-structured PPPs can help the country achieve this goal by boosting the development of health infrastructure and services." 

In October 2019, IFC and the Ukrainian government signed an MoU to identify key sectors for joint implementation of PPP projects, including the health-care sector. In 2020, IFC helped Ukraine implement its first two international seaports concessions. IFC is also working on pre-feasibility assessments of concessions in roads, airports, rail, and energy, aimed at boosting investments and accelerating Ukraine's economic growth.

About IFC

IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.

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For more information about Ukraine's Public-Private Partnership Agency, please visit

https://pppagency.me.gov.ua/​

For more information about Lviv City Council, please visit https://city-adm.lviv.ua/​