Riyadh, Saudi Arabia, June 08, 2023—One of Saudi Arabia's first public-private partnerships (PPP) in the healthcare sector, which will help deliver better radiology and imaging services to more than 1 million beneficiaries across seven hospitals, has been awarded to Altakassusi Alliance Medical (AAM) following an open tender. IFC was the lead transaction advisor for the project, assisting Saudi Arabia's Ministry of Health in structuring the PPP and implementing the project. The PPP will also offer the country's first remote reading and reporting diagnostic services in the linked hospitals, serving under-served and remote areas which will benefit some of the poorer segments of the market.
AAM, a leader in regional diagnostic imaging, is a joint venture between Alliance Medical Group, Europe's leading independent provider of imaging services; Nexus Gulf Healthcare; and King Faisal Specialist Hospital International Holding.
AAM will operate and maintain the radiology and nuclear medicine departments across the seven hospitals, employing more than 450 staff. Through AAM's 10-year capital investment plan, the PPP will help improve the quality and efficiency of medical imaging services and help maintain or replace vital equipment.
IFC has been supporting PPPs in Saudi Arabia and the country's Vision 2030 strategy, which aims to unlock private investment across key sectors. The project will serve as a pilot for the rollout of similar PPPs nationwide.
Last year, IFC also supported the rebalancing of the Kingdom's groundbreaking Madinah Airport PPP, which had been hard hit by the pandemic, allowing Saudi's General Authority of Civil Aviation to preserve the concession. IFC was the original lead transaction adviser for the PPP to develop and maintain the airport, the first of its kind in a Gulf Cooperation Council country.
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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 2022, IFC committed a record $32.8 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 global compounding crises.
As an advisor, IFC helps governments conduct detailed project studies, assess structuring options that best meet public needs and are attractive for investors. IFC assists governments in running an open and competitive tender to identify a qualified private partner. IFC's advisory support is completed once project agreements are signed between the public and private partners.
For more information, visit www.ifc.org.
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