IFC, a member of the World Bank Group, is partnering with Odisha State to improve its health infrastructure through a public-private-partnership approach. As the lead transaction advisor, IFC will structure the roll out of low-cost hospitals that will offer quality medical care at affordable prices to all residents, especially those living in smaller towns and rural areas. The project is expected to attract private investments of between $30-50 million.
The Odisha Affordable Healthcare Project will develop a dozen of hospitals with 50-200 beds each. At its full capacity of 2,400 beds, the project will increase overall beds in the State by 8 per cent and increase availability of private beds by 15 per cent. The project is the first large and systematic roll out of hospitals under the PPP model in India.
“The Government of Odisha has taken a lead in developing practical and larger-impact models involving private-sector partnerships to provide critically-needed health infrastructure. This project will create affordable healthcare facilities on a decentralized model. It will provide cost-effective, quality, and efficient healthcare services to ensure better health outcomes, especially for the economically disadvantaged,” said. Arti Ahuja, principal secretary, Department of Health & Family Welfare, Govt of Odisha.
“Improving health outcomes for the underserved and in the priority low-income states has been a special focus for all our work. PPP can help create the right mix and balance for society’s need for affordable public health services with the private sector’s need for reasonable returns. Odisha govt is our long-standing partner. This project will offer modern and good quality medical care at affordable prices to people of the state and help create an inclusive and equitable health sector,” said Jun Zhang, IFC’s India country head.
India is IFC's top country exposure, globally. IFC's committed portfolio in India is over $5 billion as of June 30, 2015. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping to structure public-private partnerships.