Mar 20, 2009
DBSA commits R700m to first health PPP outside SABack
© 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)
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...