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)
Other Video News
Recent Research Reports
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...
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...