Two PPP transactions for medical laboratories and dialysis centers in Kyrgyzstan
We assisted the Ministry of Health of the Kyrgyz Republic, under a transaction mandate from the IFC, in structuring and procuring two Public-Private Partnership (PPP) projects: 1) Centralized medical laboratory facilities and services, 2)Haemodialysis facilities and services. The mandate covers conducting due diligence and feasibility studies, engaging in market consultations, structuring the deals, preparing tender documents, marketing the projects, and managing the procurement process through to commercial and financial close.
The challenge
The main challenge was to develop bankable Public-Private Partnership (PPP) projects in a country where experience with PPPs is relatively limited. This lack of familiarity with PPP models posed significant hurdles in building investor confidence and ensuring project viability. Additionally, the healthcare sector in this context often involves smaller transaction sizes, which can make it difficult to attract a broad range of market participants. Limited transaction value tends to reduce the level of interest and competition from potential private partners, thereby affecting the overall market response. Overcoming these challenges required careful structuring and innovative approaches to design projects that were both financially viable and appealing to investors, while also addressing the specific needs and constraints of the local environment.
The approach
Each transaction is organized into two distinct phases to ensure a smooth and effective implementation. The first phase focuses on project preparation and structuring. This involves conducting all necessary studies—such as feasibility analyses, technical assessments, and financial evaluations—and developing comprehensive contractual documents. These foundational steps are critical to defining the project’s scope, risk allocation, and overall framework.
The second phase centers on the actual procurement process. During this stage, close support is provided to both the International Finance Corporation (IFC) and the Ministry of Health to manage the bidding process efficiently.
A key responsibility is to ensure that the project’s proposed structure and the requirements set out in the relevant PPP contracts are clearly reflected in the tender documentation and are strictly adhered to throughout the bidding and evaluation stages. This approach safeguards the integrity of the procurement process, promotes fair competition, and helps secure the best possible outcomes for the projects.
Impact
A successfully closed transaction for the dialysis centres, which became a blueprint for similar project in the region.
