Investment Funds Being Asked To Finance Alexandria University Hospitals

An alliance, comprised of Al-Bareeq Group, Dar for Trading & Contracting (DETAC), Siemens Medical Equipment and G4S-Lotus Facilities Management, is in talks with a number of investment funds to contribute to financing the Alexandria University hospitals project.

Sources said the value of contributions will be agreed on within the next few weeks. The investment cost of the project is EGP 2.5 billion. The National Bank of Egypt (NBE), Commercial International Bank (CIB) and Ahli United Bank will contribute EGP 1.3 billion to the finance.

The construction of the second PPP in Egypt will start by the beginning of 2013 and will last for three years. The project includes the construction of the Smouha Maternity University Hospital with 200 beds and a blood bank, as well as the Mowassat Specialized University Hospital with 224 beds.

The Egyptian Ministry of Finance signed partnership contracts with the winning alliance at the end of last April after the alliance competed with another alliance comprised of Alexandria Care, Orascom Construction Industries, Gemo Construction, IT Ventures and Misr Sons Development. The project is structured as a 20-year PPP contract. The ownership of the two hospitals and blood bank will be transferred to Alexandria University at the end of the contract.