AlphaMedic plans to invest about 250 mln GEL in rehabilitating three clinics in Tbilisi, namely, Tbilisi Children’s Infectious Clinic Hospital, the former Republican Hospital and the Universal Medical Center (the former Oncology Center).

Under the medical clinics development project, three companies had submitted proposals for the government-announced tender. However, only AlphaMedic Consortium had developed a valuable and interesting tender proposal.

Georgian Minister of Labor, Health and Social Protection David Sergeenko and the Partnership Fund executive director David Saganelidze attended the presentation of the medical clinics development project.

The mentioned three clinics will be rehabilitated  as part of the Private and Public Partnership format (PPP) and the project will also create new job places for local residents, AlphaMedic Bid Develoment Lead Leo McKenna noted and added the project accounts for 0.5 billion USD:

This signifies improved health system for patients in Tbilisi and on the territory of Tbilisi. Moreover, various modern healthcare facilities will be arranged in Tbilisi. Local companies will increase their commercial potential, new job places will be created for local population. This investment will inspire this regeneration in the country. Moreover, many non-profile benefits will be also reaped as part of the project.

As to investments and the project’s cost-efficiency, Leo McKenna explains:

Part of the investments will be attracted by the project partners. Two shareholder partners are AlphaMedic and the Partnership Fund and their financial participation will constitute 40% of total investments, while the remaining 60% will be mobilized from creditors.

In practice, these financial resources will be attracted in the form of loans. We have started exploring the market to identify the local readiness for the project implementation. We have received positive results. Local residents back this project. This signifies the financial support will be guaranteed.

The component of hospitals account for 250 million GEL, while the whole PPP program that calls for arranging 247 various primary assistance centers will need about 0.5 billion USD financial resources. The PPP format is financially returnable format.

The UK government introduced this format in 1980s to improve the component of purchases. Traditional projects frequently delay and require more finances. The statistics proves that this kind of projects ensures a timely supply of products and is properly calculated funds compared to the traditional purchases.

The PPP format always returns investments through tenders to find the most optimal suppliers. This component is the most complicated stage in tenders, when the winner company really tries to implement the project under the most profitable schemes”, Leo McKenna said.

The project will be implemented in 36 months and the first stage calls for rehabilitating the oncology clinic, Leo McKenna said.

The first phase will be supplied in about 18 months. The project must be finished in three years after the contract conclusion. We are pleased to have been selected for the Ministry and the Partnership Fund.

AlphaMedic is pleased to enter Georgia with its investments and to develop the sector. We hope for further continuation of our partnership to make this project attractive and successful for Tbilisi residents and patients. We believe our consortium holds the potential to successfully implement this project”, Leo McKenna said.

Finally, the AlphaMedic head also talked about the company experience:

Our consortium provides a supply of health services and other options in the infrastructure field. It implements PPP Projects on the global level. AlphaMedic was founded in Vienna, Austria. The company will supply both medications and equipment to patients and various facilities in the field. Our consortium is also able to develop finically valuable projects.

Other companies frequently submit their projects, but those projects are not valuable and balanced and therefore, those projects are destined to failure. AlphaMedic does its best to make these projects vivid and direct these finances into the correct bed to implement realistic processes.