Peshawar, Pakistan, May 24, 2022—IFC signed an agreement today with the government of Khyber Pakhtunkhwa (GoKP) province to help arrange a landmark public-private partnership (PPP) for the construction of a state-of-the-art hospital with up to 500 beds in provincial capital Peshawar.
Peshawar's population has increased by 52 percent over the last two decades. That has increased stress on the city's healthcare facilities, which have been further exacerbated by the pandemic and an influx of patients from surrounding districts and neighboring Afghanistan.
Under the agreement, IFC, a member of the World Bank Group, will support the government of Khyber Pakhtunkhwa in structuring the PPP transaction. IFC's team will also assist the government in running a transparent, competitive bidding process to select a private sector developer and operator for the hospital, which will deliver tertiary care.
"The new hospital is expected to serve over 150,000 people annually and will be Pakistan's first greenfield PPP in the healthcare sector. We believe it will serve as a model transaction allowing us to replicate the project for other much needed healthcare facilities," said Mahmood Khan, Chief Minister, Khyber Pakhtunkhwa.
"This project is a monumental step towards fulfilling GoKP's promise of increasing accessibility to quality tertiary healthcare across the province. It will demonstrate the ability of leveraging the Sehat Sahulat card to attract private sector investment in the construction and operation of tertiary care facilities," said Taimur Khan Jhagra, KP's Finance and Health Minister.
Peshawar is the sixth largest city in Pakistan with a population of approximately 2 million and accounts for nearly a third of total hospital admissions in Khyber Pakhtunkhwa. The new PPP complements a $400 million World Bank-sponsored project aimed at strengthening the province's healthcare system.
"Quality, affordable and accessible healthcare is critical for Pakistan's economic growth and development," said Zeeshan Sheikh, IFC Country Manager for Pakistan and Afghanistan. "Leveraging the private sector's capital and know-how will help spur development in this key sector, improving the quality of service for patients and providing a financially sustainable model for scaling up investment."
The project is part of the World Bank Group's strategy in Pakistan to support private sector development, create markets, and accelerate improvements in public service delivery.
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 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org
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