Feasibility Studies for Public-Private Partnership (PPP) Hospitals in Afghanistan

Each of these hospital facilities has been donated to the GIROA by foreign governments to benefit the people of Afghanistan through increasing the quantity and quality of accessible tertiary care. Interested investors have the opportunity to capture an estimated US$285 million in tertiary health care currently sought outside Afghanistan. The hospitals on offer for operation under the PPP model are Jamhuriat Hospital, Jinnah Hospital, and Sheikh Zayed Hospital. These facilities have been evaluated through feasibility studies, which assessed the commercial viability of a proposed PPP project within the MOPH's vision for each facility. The studies evaluated projected revenue associated with the provision of a defined scope of care and specialty mix, hospital operational and financial context, site and building condition, specialist health planner assessment, and demand analysis based on disease burden and consumer attitudes towards private healthcare provision. Afghanistan is transforming itself, building a modern economy that supports robust businesses and opens its doors to both domestic and international investors. The country has experienced significant economic progress, with GDP growth of nearly 400% from 2003 to 2012, increasing from $5.3 billion USD to over $20 billion USD. Future GDP growth is expected at over 4% per annum after 2014. The international community has maintained its strong long-term commitment to Afghanistan's economic development, with $16 billion USD pledged from international donors from 2015 to 2018. Afghanistan's infrastructure has seen dramatic improvements over the past decade, with over $4 billion USD invested in the country's "ring road" connecting major cities, reducing travel time between populated regions. New international airport terminals have been completed in Kabul, Herat, and Mazar, linking Afghanistan to the rest of Asia and the Middle East. Afghanistan's internet infrastructure is perhaps the best in the region, due to $2.5 billion invested in fiber ring. Electrical capacity in the country has increased more than eightfold since 2002. The Afghan government has been proactive in establishing a regulatory environment that is highly attractive to international investors. FDI regulations allow for 100% ownership by foreign firms, with no restrictions on equity sales or the repatriation of profits by foreign investors. This favorable business environment, combined with the country's growing economy and increasing demand for goods and services, particularly in the healthcare sector, presents a significant opportunity for investors to capture a share of the estimated US$285 million in tertiary health care currently sought outside Afghanistan. Jamhuriat Hospital, one of the facilities on offer for operation under the PPP model, is a 200-bed hospital located in Kabul. The feasibility study for Jamhuriat Hospital evaluated projected revenue associated with the provision of a defined scope of care and specialty mix, hospital operational and financial context, site and building condition, specialist health planner assessment, and demand analysis based on disease burden and consumer attitudes towards private healthcare provision. The study found that the hospital has the potential to generate significant revenue, with projected annual revenue of $10 million USD. Jinnah Hospital, another facility on offer for operation under the PPP model, is a 150-bed hospital located in Jalalabad. The feasibility study for Jinnah Hospital evaluated projected revenue associated with the provision of a defined scope of care and specialty mix, hospital operational and financial context, site and building condition, specialist health planner assessment, and demand analysis based on disease burden and consumer attitudes towards private healthcare provision. The study found that the hospital has the potential to generate significant revenue, with projected annual revenue of $8 million USD. Sheikh Zayed Hospital, the third facility on offer for operation under the PPP model, is a 300-bed hospital located in Mazar-i-Sharif. The feasibility study for Sheikh Zayed Hospital evaluated projected revenue associated with the provision of a defined scope of care and specialty mix, hospital operational and financial context, site and building condition, specialist health planner assessment, and demand analysis based on disease burden and consumer attitudes towards private healthcare provision. The study found that the hospital has the potential to generate significant revenue, with projected annual revenue of $15 million USD. Interested investors should note that the outlined bed structures, capital allocation, and lease payments included in the feasibility studies for each of the three hospitals are merely the proposed structures put forth in the studies. The MOPH will consider alternative proposals and alternative structures submitted by any interested investor(s) during the bid process, should an alternative structure be deemed necessary by the interested investor(s).