Alexandria University Hospitals PPP Project

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Alexandria University Hospitals PPP Project
Investor Conference June 18, 2008
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Discussion Overview

• PPP Objectives and Strategy
• Key Principles of the PFI Contract
• Transaction Structure Two Lots
• Allocation of Risk and Responsibility
• Service Provider - Profile Structure
• Key Issues for Discussion During Q A
• Project Time-line

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PPP Objectives and StrategyAlexandria University
Hospital Project

• General objectives of the University Hospitals
  Project
• Improve quality of facilities to international
  standards
• Increase cost-effectiveness of construction,
  design, operation and management
• Increase access to specialized hospital care
• Gynecology Hospital Blood Bank PPP aims to
• Rebuild a new Gynecology/Obstetrics University
  Hospital at Smouha to provide patient care,
  teaching and research for gynecological and
  obstetric services
• Rebuild a new blood bank
• New Mowassat Hospital PPP aims to
• Build a Center of Excellence for Neurology and
  Urology that will provide a number of highly
  specialized care services on an inpatient and
  outpatient basis

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Key Principles of the PFI Contract

• The Government transfers responsibility and risk
  for hospital assets, non-clinical and some
  diagnostic services to the Service Provider.
• Service Provider takes on obligations for 20 or
  more years.
• Service Provider designs, builds, maintains
  hospital assets and provides non-clinical and
  some diagnostic services.
• Lenders fund Service Provider on limited recourse
  basis.
• Government pays an Availability Payment for
  available and acceptable hospital service for
  duration of long-term PFI contract
• Detailed PFI contracts specifying performance
  obligations

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Transaction Structure - Two Lots
? Consortia will be able to bid on one of two
lots, or on both
Lot 1
Lot 2
Mowassat Center of Excellence
Gynecology Hospital Blood Bank

• Finance, design, construct, equip and operate all
  non-clinical services of a new OB/GYN hospital
  and a Blood Bank
• Part of a 3-part hospital complex incl. Emergency
  Pediatrics
• Gynecology Hospital 200 beds emphasis on
  out-patient / short-stay
• Blood Bank Estimated 100,000 - 120,000 donors
  and 200,000 blood products per year

• Finance, design, construct, equip and operate all
  non-clinical and some diagnostic services of
  Alexandrias 1st high-quality hospital of
  international standards as two Centers of
  Excellence
• Nephrology/Urology
• Neurosurgery
• Around 230 beds

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Allocation of Risk and Responsibility
Private sector
Public sector
Public / Private sector
Allocation of Risk and Responsibility
Capital Funding
Equipment
Facility Maintenance
Non-Clinical Services
Clinical Services
Hospital Management
Clinical Support Services
Construction
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Service Provider - Profile

• The PPP Contract will be signed by the University
  of Alexandria and a Special Purpose Vehicle
  (SPV) to be legally incorporated prior to
  bidding.
• The Government is providing investors with
  considerable flexibility in forming their SPV
  consortium to best suit their needs, strengths
  and interests.
• A typical SPV structure within the PPP
  contractual arrangement is shown in the following
  slide however, the SPV could take many different
  forms.

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Service Provider - Structure

• The following schematic illustrates the private
  and public sector roles in the PFI model and how
  we envisage the SPV to be structured

MoF/MoHE
CLINICAL SERVICES
Availability Payment
Budget
NON-CLINICAL SERVICES
Alexandria University
SPV
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Key Issues for discussion during Q A

• Contract term Is there investor interest to
  lengthen the contract for 20 years?
• Medical equipment How should replacement of
  equipment in technology over the course of the
  project be determined?
• Design How specific should design
  specifications
• be?
• Diagnostic services Is there investor interest
  to take on more of the clinical specialty areas?
• Availability Payment How will the payment
  mechanism be set? (frequency, inflation
  adjustment, etc.)

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Project Timetable
May
Apr
Mar
Feb
Jan 2009
Dec
Nov
Oct
Sept
Aug
July
June
Draft Tender Docs
Due Diligence
Bidder Conference
Bid submission deadline
Sign PPP Contract
Data Room
Pre-Bid Meeting Site Visits
Technical Evaluation
QA
Finalize Tender Docs
Prequalification
Commercial Bid Opening
Winning Bidder Selected
Issue final RFP Tender Docs
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