BAKU, Azerbaijan, September 18. The European
Bank for Reconstruction and Development (EBRD) is considering up to
$158 million in financing for the construction of an 800-bed
multidisciplinary hospital in Uzbekistan’s Fergana region.
This was reflected in the statement by the EBRD.
The proposed financing package comprises a senior secured loan
of up to $120 million and an equity bridge loan of up to $38
million. The funds would support the design, construction,
equipment, maintenance and handover of the medical complex.
The project will be implemented under a 23-year public-private
partnership (PPP) agreement signed with Uzbekistan’s Ministry of
Health.
The total project cost is estimated at up to $340 million. In
addition to the proposed EBRD financing, the project is expected to
receive funding from sponsors in the form of shareholder loans, as
well as financing from other international development
institutions.
The borrowers will be special-purpose companies beneficially
owned, on a parity or shareholding basis, by members of the
international consortium, including Saudi Arabia’s Vision
International Investment Company (Vision Invest), KOC Construction
Mekanik Elektrik LLC FE and the Azerbaijan-Uzbekistan Investment
Company (AUIC). AUIC is a joint investment vehicle established by
the governments of Azerbaijan and Uzbekistan to support bilateral
economic cooperation and investment projects.
The medical complex will have 800 beds and is expected to expand
access to advanced healthcare services, including cardiac surgery,
neurosurgery and transplantation.
Based on the disclosed figures, the EBRD’s proposed financing of
up to $158 million would cover about 46.5% of the project’s
estimated $340 million total cost. The remaining amount of up to
$182 million would be expected to come from sponsors and other
international development institutions.
The project is expected to be one of Uzbekistan’s major PPP
initiatives in social infrastructure and could establish a model
for similar healthcare projects in the region. The hospital is
planned as a comprehensive medical facility, with financing
covering not only construction but also equipment, technical
maintenance and the eventual handover of the facility.
The EBRD’s Board of Directors is scheduled to consider the
proposed financing on October 21. The project has also been
developed with strategic support from the International Finance
Corporation (IFC), a member of the World Bank Group, and financial
support from Germany’s Federal Ministry for Economic Cooperation
and Development (BMZ).
The consortium previously signed an agreement with Uzbekistan’s
Health Ministry for the development of the medical complex, which
is expected to be implemented over a 36-month construction
period.
