SHILLONG: A total number of five private firms have come forward to bid for the tender floated by the Washington-based International Finance Corporation (IFC) for developing of a medical college and associated teaching hospital on a Public Private Partnership (PPP) mode in the State.
The IFC had floated the tender on behalf of the State Government in its official capacity as consultant of the proposed project.
“We have received application from five private firms for the proposed medical college in Shillong,” official sources informed here on Sunday.
The sources also informed that the tender applications would be opened on August 31.
As per the project teaser prepared by the IFC, the Government is proposing to construct a 100-seat medical college with an associated teaching hospital of 500-bed capacity with flexibility on phased development in accordance with regulatory requirements.
In addition to this, the sources informed that the selected private partner will be allowed to develop other ancillary activities (educational and medical) such as a specialty hospital as a private undertaking.
The private firm would also be responsible in assisting in financial closure for development of the medical college and design, develop, finance, construct, operate and maintain the proposed medical college and hospital for the concession period.
“The private firm would have to see that the proposed medical college adheres to the Medical Council of India (MCI) guidelines at all times,” the sources said while adding that the private firm would have to transfer the project to the Government after the end of the concession period.
The sources also said that the existing Reid TB Hospital campus totaling 23.8 acres of land in Jhalupara has been finalised as the proposed site for the medical college.
Of the total land parcel to be leased to the private partner selected as the Concessionaire, an area of up to 3.8 acres is being offered for the development of ancillary activities, the sources further informed.
With regards to fund allocation for the project, the sources said that the Government requires a maximum contribution of Rs 100 crore from the private firms for the project.
Informing about the key responsibilities of the Government in the project, sources informed that that the Government would have designate the medical college as a non-private University through necessary legislation.
“The Government would also have to provide 99-year lease for the site and 30-year concession to the private entity which may be extended by another 15 years,” the sources informed.
Earlier, the State Government had signed a memorandum of understanding with IFC to explore possibilities for private sector investment for establishment of the Shillong Medical College.
After approval of the transaction structure, IFC will assist the government in implementing the transaction and managing the actual bid process and the finalization of PPP contract documents until signing of the final contract agreement with the private entity chosen for the project