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São Paulo, Brazil, January 16th, 2024 – IFC, a member of the World Bank Group, and the Minas Gerais Development Company (Codemge) have signed an advisory agreement to study and further structure a project for the construction and operation of a New Health Complex in the city of Belo Horizonte, with the support of private capital and expertise, using the public-private partnership (PPP) model. The New Health Complex will deploy modern equipment and offer multiple lines of health care, including oncology, infectious diseases, maternity, women health, and pediatric care. The space will also host a multipurpose center for innovation in public health, and a new Laboratório Central de Saúde Pública - Lacen (Central Public Health Laboratory, in English). Under the PPP, the private partner, to be selected under a competitive process, will be responsible for the construction and maintenance of the new health complex, in addition to the provision of equipment and execution of non-clinical services such as cleaning, maintenance, concierge, hospitality services, and catering. All clinical services, such as medical care and nursing, will continue to be offered free of charge by Brazil's Unified Health System (Sistema Único de Saúde - SUS) and performed by the public teams from the Fundação Hospitalar de Minas Gerais (FHEMIG), and the laboratory and research services will remain under the responsibility of the Fundação Ezequiel Dias (FUNED). In addition, the private partner will be responsible for the investment in the construction of the New Health Complex. The adoption of a PPP model for this project will allow the works to be completed quicker and shall allow greater efficiency in non-clinical and non-laboratory services provision, enabling the managers of public health care units to focus more extensively on the key health care and laboratory monitoring activities. The New Health Complex will have about 400 beds, reducing overload on the public health care network in the state of Minas Gerais and benefiting the 4.9 million residents of the metropolitan area of Belo Horizonte. "A modern and efficient health care system is essential for improving the quality of life of Brazilians. The private sector has an important role to play, working hand in hand with the public sector, contributing with financial resources and expertise to enable expansion and improvements in the health care sector," says Carlos Leiria Pinto, IFC's Brazil Country Manager. The studies to structure the PPP are being conducted by IFC, with financial support from PSPInfra, a partnership between the Inter-American Development Bank (IDB), the Brazilian Development Bank (BNDES), and IFC to improve the offer of public services in Brazil through the development of infrastructure with the participation of the private sector. Codemge and the State's Department of Infrastructure, Mobility and Partnerships (Seinfra), with the participation of FHEMIG, FUNED, and the State's Department of Health, are the responsible entities for the execution of the project within the Minas Gerais State Government. "Well-structured PPP projects in the health care sector are an important tool to help the public sector achieve its goal of improving access and quality of services, contributing to a stronger and more inclusive Unified Health System (SUS). This project will enable Minas Gerais to offer a more efficient and sustainable provision of public health care services," says Bernardo Tavares, Head of IFC PPP Advisory Services in Brazil. About IFCIFC — a member of the World Bank — 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 2023, IFC committed a record $43.7 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. For more information, visit www.ifc.org. Stay Connected with IFC on social media.
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