Netcare appointed as preferred bidder for large PPP in Lesotho

A consortium lead by Netcare has been appointed as the preferred bidder for a PPP contract with the Government of Lesotho. The cost of the project is estimated at more than R800 million.

The PPP agreement requires the design, building, finance, equipment and operation of a 390-bed national referral hospital at a greenfield site as well as the refurbishing and operation of two feeder clinics. The PPP contract is for a period of 18 years, including three years of construction.

The Netcare Consortium is comprised of Netcare (40%); Excel Health (20%), an investment company for Lesotho-based specialists and general practitioners (GP's); Afri'nnai (20%), an investment company for Bloemfontein-based specialists and GP's; Mohloli (10%), the investment arm of the Chamber of Commerce; and BWI (10%), a Basotho Women investment company.

“The 390-bed referral hospital is to replace the Queen Elizabeth II hospital which is run by the State and not nearly adequate to accommodate the high need for tertiary medical care,” says Dr Victor Litlhakanyane, Director of Group Stakeholder Relations at Netcare. “By partnering with the Government of Lesotho we will be contributing greatly towards making quality primary, secondary and lower tertiary clinical services more accessible to the people of Lesotho.”
According to Dr Litlhakanyane 35 private beds will be co-located with the State beds in the same facility, with private specialists visiting and consulting from Bloemfontein. Negotiations to finalise the service delivery plan, transition plan and other technicalities will commence in January next year, with construction expected to start in March 2008.

“Netcare has extensive experience in partnering with Governments on healthcare service delivery. In South Africa we have, for instance, entered into formal PPP's with the Health Departments of the Free State and Eastern Cape. We also have a number of private public initiative (PPI) contracts relating to both healthcare delivery and healthcare training that will improve the quality of care available,” says Dr Litlhakanyane. He continues: “Netcare UK is furthermore fulfilling several contracts on behalf of the National Health Service (NHS).”

Mari Bruwer, CEO of PPP's at Netcare, says that the knowledge gained with similar projects in both South Africa and the United Kingdom will be a great asset which Netcare and its consortium partners can share with the Government and people of Lesotho. “We are looking forward to working with the Ministry of Health and Welfare in the Mountain Kingdom to ensure the National Health System of Lesotho provides appropriate and excellent healthcare through this PPP.”