10 June
Project proposal received
Project proposal approved. Procurement of Transaction Advisor is at the final stages.
Health
Nairobi
Pre-procurement
Kenya Ports Authority (KPA)
17-05-2022 16:13:05
In March 2012, KNH began exploring opportunities for private sector participation to modernize the hospital. The initial project proposed under a Public Private Partnership (PPP) arrangement is a 300 Bed Private Hospital, which is now part of Kenya Vision 2030 Flagship project. It will be a stand-alone facility with a different operation platform however some of the none-core services could be shared if at all it would cut the operation costs without affecting the quality and efficiency of services being rendered in the private hospital such as laundry services. After completion of development, the 300-bed Private Hospital being will provide Kenyans with local access to state-of-the-art specialty care thereby potentially reducing the need to travel abroad and develop into a regional referral centre of excellence. The services provided will be at market rate and shall provide high level of specialization, efficiency and quality care.
This facility will provide an alternative for the current hospital private wing by releasing it for the general public use. In addition since the hospital will be operating competitively with other private hospitals some of the resources generated will act as leverage to the main hospital. This will assist in improving the services and at the same time reduce the dependence of the exchequer as is the case currently. The facility will create employment opportunities as well as ensuring quality patient care through a healthcare delivery model that includes operational elements such as: • Progressive Patient Care Model Approach • Episodes of Care Management Technique to Continuum of Care • Nursing Excellence through Proficiency, Compassion and Care • Latest Medical & Allied Equipment • Accessibility to Latest Technological Developments • Collaborations with eminent Global Institutions for continuing education, Faculty Exchange, training & transfer of knowledge for professional staff. • Total Quality Management (TQM)/JCI through Accreditation • Evidence based medicine
The project was selected for development as a PPP because it proved that it would generate value for money to the government if done as a PPP rather than using traditional methods of procurement. Value for Money is determined as the difference between the costs to the government for doing the project as a PPP, and the cost of using traditional procurement methods. Projects that generate a positive value for money are considered the best projects to be undertaken as PPPs, since there is optimal risk allocation, which allocates risk to the party best suited to manage it. Other than the provision of value for money, the involvement of a private party results in improved service delivery and efficiency in implementation of the project. The project involves contracting with a private operator to build, operate and transfer a new private facility that provides specialty healthcare at competitively and affordable rates. The private party would finance, construct, operate & maintain then transfer the facility to Kenyatta National Hospital at the end of a specified term that shall not exceed thirty years.
A joint venture Ernst & Young LLP consisting of Ernst & Young LLP (Kenya) & Ernst & Young LLP (India) and its consortium were appointed as consultant on 22nd March 2018 to undertake the project feasibility study consistent with the PPP Act, 2013 to a standard that will enable the Contracting Authority (CA) to establish the technical configuration, affordability, commercial attractiveness and bankability of the proposed PPP Project. The Consultant to be engaged will prepare a feasibility study consistent with the PPP Act (2013) to a standard that will enable the Contracting Authority (CA) to establish both the project feasibility and its optimal technical and operational configuration, as well as the optimum method of procurement, taking into account commercial attractiveness, bankability, affordability and Value for Money. No. Deliverable 1. Inception Report 2. Papers on project configuration (including shadow design), financial analysis, economic analysis, legal due diligence, PPP options analysis, risk analysis, market sounding, etc. 3. Draft of Feasibility Study Report and Draft Project Financial Model 4. Final Feasibility Study Report, Draft EIA report, and Financial Project Financial Model 5. Draft transaction documents, including RfQ, RfP, draft PPP Agreement, Output Specifications, evaluation criteria, final EIA report, 6. Final transaction documents
Not applicable.
.
10 June
Project proposal approved. Procurement of Transaction Advisor is at the final stages.