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The Federal Government has begun the third phase of upgrade and modernisation of teaching hospitals under a public-private partnership (PPP) model.
Consequently, the Infrastructure Concession Regulatory Commission (ICRC) has issued to the Federal Ministry of Health a document titled, “Outline Business Case Certificate of Compliance for the Rehabilitation, Equipment Supply and Management of Federal Teaching Hospitals in Nigeria.”
Speaking at the event in Abuja, the Director-General of ICRC, Chidi Izuwah, hinted that contracts for the rehabilitation, refurbishment, upgrade and equipment modernisation and standardisation of the medical facilities were awarded to CPL Medical Group and VAMED Engineering in 2003.
He noted that the health ministry was displeased with the impact of the exercise 16 years ago hence the submission of a proposal for the third phase to President Muhammadu Buhari for approval.
According to him, the request was sanctioned by the presidency with a directive that this particular phase is implemented on a PPP basis.
He said: “Under the PPP arrangement, the private sector is responsible for investing, operating and maintaining those facilities over a period of time and recover their investment from a combination of user- fee and potential revenue from the government.”
Izuwah disclosed that CPL Medical Group, through the ministry, submitted an unsolicited PPP proposal which was sent to the ICRC, adding that a proposition would be sought from the Federal Executive Council (FEC) for an accelerated PPP pilot scheme for six teaching hospitals, one in each of the geopolitical zones, and a 500-bed Federal Medical Centre of Excellence in Abuja.
In his remarks, the Permanent Secretary in the ministry, Abdullazizi Mashi Abdullahi, noted that the project was a milestone and consistent with President Buhari’s passion for human capacity development.
He commended the ICRC for lending support to the current administration’s effort at reducing maternal mortality nationwide, pledging that the ministry would take necessary actions to ensure the realisation of the project.