IDBZ seeks medical partners

Source: IDBZ seeks medical partners | The Herald 27 AUG, 2019

Ishemunyoro Chingwere Business Reporter
The Infrastructure Development Bank of Zimbabwe (IDBZ,) has invited private investors to partner in the development of three medical facilities as part of efforts to participate in the improvement of health care that it says is key to economic growth, development and poverty reduction.

The three facilities will be in Harare, Norton and Kadoma. The Norton facility, to be constructed on land owned by the development finance institution and to be run by PSMI on a lease, has had its preliminary project costs estimated at US$14 million, while in Kadoma the bank is seeking to convert a stand it owns into a health facility to be run on the same terms as the one in Norton.

The Kadoma project is expected to cost US$12 million. In Harare the bank, which owns Athol Evans House in Eastlea, is seeking to work with HealthPoint and contends that it is a compelling investment as there already exists strong demand for medical facilities in Zimbabwe.

It is the bank’s wish that this facility be converted into modern medical facility with a casualty department, radiology centre, wards, ICU and HDU and a modern theatre and will be run by HealthPoint on completion.

In a notice to prospective investors, the bank said health sector investment is compelling in the country as it offers good returns.

“Health care investments often provide attractive investment opportunities,” said the bank in a notice.

“The required infrastructure investments can be financed in many different and competing ways with project financing techniques becoming increasingly recognised as a useful and appropriate mechanism.

“For purposes of the above investments, a project finance perspective will be used for preparing a proper business model, where economic and financial flows are projected along the time span of the investment.

“The capital structure will be optimised on a project by project basis within the limits of an acceptable debt service coverage ratio (DSCR),” said the bank.

Among other key factors, the bank is in search of partners with a demonstrable financial and technical capacity to undertake such a project as well as have a long-term investment horizon.

“The Bank is seeking to partner with reputable investors who have proven experience in the development and financing of medical facilities and . . . shall be properly incorporated according to the laws of Zimbabwe . . . demonstrates capacity (financial, technical, experience) to deliver projects of this nature.

They will need to “provide an impeccable verifiable company profile showing the experience and profiles of key personnel within the organisation. The investor shall have a long-term investment horizon,” said the bank.