IFC partners Odisha to develop hospitals on PPP model

IFC will structure rollout of low-cost hospitals offering quality, affordable health care to all, especially those in smaller towns and rural areas

 

IFC, the private lending arm of the World Bank Group has partnered Odisha to improve health infrastructure through a public-private-partnership (PPP) approach.

As the lead transaction advisor, IFC will structure the rollout of low-cost hospitals that will offer quality medical care at affordable prices to all residents, especially those living in smaller towns and rural areas.

The Odisha Affordable Healthcare Project will develop up to 12 hospitals with 50-200 beds each. At its full capacity of 2,400 beds, the project will increase overall beds in the state by eight per cent and increase availability of private beds by 15 per cent. The project is the first large and systematic roll-out of hospitals under the PPP model in the country.

"The Odisha government has taken a lead in developing practical and larger-impact models involving private-sector partnerships to provide critically-needed health infrastructure. This project will create affordable healthcare facilities on a decentralized model. It will provide cost-effective, quality, and efficient healthcare services to ensure better health outcomes, especially for the economically disadvantaged. IFC will bring its global expertise in PPPs and healthcare services and experience in engaging with potential investors to the project", said Arti Ahuja, principal secretary, health & family welfare, Odisha.

Jun Zhang, IFC's India country head, said, "Odisha government is our long-standing partner. This project will offer modern and good quality medical care at affordable prices to people of the state and help create an inclusive and equitable health sector."

The project is expected to attract private investments of between $30-50 million. In the past, IFC has worked with the Odisha government to promote private sector-led growth in the strategic sectors of agri-business and tourism and implemented PPP projects in sectors such as energy-efficient street-lighting and solid waste management.