Saudi Arabia awards first hospital PPP contract

30 March 2023

Saudi Arabia’s Health Ministry, through the National Centre for Privatisation and PPP (NCP), has awarded the contract to develop the kingdom's first hospital public-private partnership (PPP) contract.

A consortium of the local Tamasuk Holding Company and Kuwait-based Alghanim International has been selected for the contract to develop the 244-bed Al-Ansar hospital PPP project in Medina, Saudi Arabia, as MEED previously reported.

The contract is valued at roughly $250m, based on regional projects tracker MEED Projects estimates.

Two consortiums passed the technical evaluation stage, MEED reported in September.

A team led by Al-Rajhi Holding, also Saudi-based, was the other shortlisted bidder.

Al-Ansar hospital is the first project approved in the healthcare sector under Vision 2030’s privatisation programme.

NCP received bids from local and international companies for the Al-Ansar hospital PPP scheme in November 2021.

The scope of the PPP contract comprises design, construction, equipment procurement, and operation and maintenance activities.

A total of 86 companies expressed interest in bidding for the contract in April 2020, and prequalified consortiums were named in January 2021.

Socioeconomic programme

The privatisation project is advancing as Saudi Arabia pursues healthcare growth as part of its socioeconomic diversification mandate.

The kingdom aims for 88 per cent of its population, including in rural areas, to be covered by “inclusive health services” by the end of 2025.

The procurement process is under way for another healthcare PPP project in Saudi Arabia, as MEED reported in August. 

The Health Ministry and NCP qualified companies that can bid for the contract to develop two medical city projects.

The King Faisal Medical City will be developed in the Asir region’s Abha city. The Prince Mohammad bin Abdul Aziz Medical City will be built in Sakaka in the Al-Jouf region.

Overall, over $4.8bn-worth of new hospital and clinic buildings are under construction in Saudi Arabia. Some $6.4bn are in the pre-execution phase, according to the latest available MEED Projects data.

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Jennifer Aguinaldo
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