Mar 20, 2009
DBSA commits R700m to first health PPP outside SABack
Construction|Engineering|Africa|Consulting|Education|PROJECT|Projects|The Development Bank Of Southern Africa|Tsepong|Africa|Lesotho|South Africa|Equipment|Healthcare|Mining|Public Finance|Services|Infrastructure|Mosito Khethisa|Mphu Ramatlapeng|Netcare|Tadesse Admassu
© Reuse this
The Development Bank of Southern Africa (DBSA) signed loan agreements of about R700-million with Tsepong, a consortium led by Netcare to construct, upgrade and operate the new public referral hospital and refurbish the existing filter clinics, on behalf of the Lesotho government.
DBSA international division executive vice-president Tadesse Admassu told Engineering News Online, on Friday, that the DBSA is excited to raise the level of fixed capital formation infrastructure development.
"While this is our mandate, it is also is an area that has a great deal of backlogs across various sectors in the whole region, of which, one is healthcare. Healthcare is a special sector, as it does not always lend itself to these types of investments. Healthcare is always financed straight out of public finance, or budget sources. What is special about this project is that government and private sector have come together to invest in a significant rehabilitation project," he said.
Lesotho's Ministry of Finance and Development Planning principal secretary Mosito Khethisa says that his government is investing R400-million in the project.
"The key issue is the leverage effect. We always know that governments have limited capacity and for a government to be able to bring in twice as much as they are putting in-this is quite a feat. We talk about raising the levels of investment in the economy, particularly in the productive or mining sectors, or the extractive industries generally - these are good for the economy, but do not always support the social development in the same way that a healthcare or an education project can," says Admassu.
Admassu also told Engineering News that this type of investment has not been made in decades. "It is not the kind of project that is easily done - so, it is complex and large, and in a sector that has a high developmental impact."
Minister of Health and Social Welfare Dr Mphu Ramatlapeng said that the PPP hospital was a critical step to improving health services and results for the nation.
Ramatlapeng said that there would be strict reporting and monitoring procedures in place on a daily, monthly, quarterly and yearly basis to ensure that government can hold Tsepong accountable.
"The specification of standards, set budgets, expected results, strict management and accountability is often lacking in traditional government projects and this is what differentiates this project from others. By providing both affordable and excellent facilities, management services and training, this public hospital will provide an example for other hospitals in Lesotho, and indeed, other public hospitals in Africa," she added.
The new hospital will provide a wide range of services, highly trained staff and specialised medical equipment, while serving as the national primary clinical and training facility for health professionals.
Thirty-five private beds will be colocated with the State beds in the same facility, with private specialists visiting and consulting from Bloemfontein.
The construction of the new hospital is expected to be completed in mid-2011, and the clinics later this year.
Currently, 40% of the shares in Tsepong are held by Basotho businesses, and this will increase to 55% during the project term.
‘The government of Lesotho is committed to growing the private sector and sustainable economic development. This project is an important part of growing our economy," said Ramatlapeng.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Updated 4 hours ago The Cape Town International Convention Centre (CTICC) has outperformed its targets over the past financial year and contributed R3.1-billion to the gross domestic product in the 2013/14 financial year. CTICC CEO Julie-May Ellingson said the convention centre had been...
Updated 4 hours ago Public Enterprises Minister Lynne Brown has released details of the remuneration of the chairpersons and nonexecutive directors of the various State-owned company boards falling under her Ministry. The remuneration figures, which are attached, are based on figures...
Updated 5 hours ago Installed wind power capacity could swell by 530% to 2,000 gigawatts (GW) by 2030, supplying up to 19% of global electricity, a report from a trade association and Greenpeace said on Tuesday. It said installed wind energy capacity totalled 318 GW at the end of last...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...