PPP Hospitals and PPP Schools - Alberto Lozada, Senior Investment Officer

1. COLOMBIA
INSIDE OUT
2019

2. BOSA PPP
HOSPITAL
ALBERTO LOZADA, SENIOR INVESTMENT OFFICER,
IFC

3. Background
The Health Secretariat of Bogota (HSB) as part of its infrastructure program will be
launching a tender process for the Bosa Public-Private Partnership (PPP) public
hospital
This project is part of a 5 public hospital program which includes 3 structured as PPP
and 2 as public works
Bosa hospital is Colombia’s first health PPP project, the new facilities will be focused
on medium to high complexity chronic patients
The other 2 PPP hospitals will be tendered by a future administration

4. Transaction structure
Bosa hospital has been structured as an 18-year PPP comprising of a 3.5-year pre-O&M phase and a 14.5-
year O&M phase
Availability payments→ 100% city risk rating AAA (local) BBB (Fitch) BBB- (S&P)
SCOPE
➢ Design
➢ Finance
➢ Construct
➢ Equip
➢ Equipment Renewal
➢ Provide selected non-medical services
The proposed site belongs to HSB and already has the technical and legal viability to be used in hospital
construction
Hospital beds 215
Construction ~30,000 m2
• Infrastructure and equipment maintenance
• Equipment and consumables
management
• Security
• Cleaning
• IT and Telecom
• Help Desk
• Public services efficiency (BEMS)
➢ Provide selected non-medical services

5. Prequalification Criteria and Timeline
Current prequalification will be based on the following
criteria:
➢ Legal: Representation and capacity to sign contracts
➢ Investment: Capacity to raise infrastructure project’s
financing
➢ Construction: At least two hospital projects
➢ Financial capacity: min net worth and debt capacity
(measured by min debt ratio or credit line)
Those that fulfill prequalification requirements above will
be allowed to participate in the bidding process.
➢ Expression of Interest 28-Jun-19
➢ Expression of Interest’s preliminary
report
05-Jul-19
➢ Observations to preliminary report 12-Jul-19
➢ Counter observations 19-Jul-19
➢ Observations and counter observations’
report
29-Jul-19
➢ Final prequalification hearing 30-Jul-19

6. Contacts
➢ Link to prequalifying documents
https://www.contratos.gov.co/consultas/detalleProceso.do?numConstancia=1
9-19-9350084
➢ For further information please direct your inquiries to
contratacion@saludcapital.gov.co
➢ To ask for individual appointments with the structuring team, please direct your
requests to hospitalbosa@fdn.com.co

7. SCHOOL PRIVATE
PUBLIC
PARTNERSHIP
MEDELLÍN AND
BARRANQUILLA
ALBERTO LOZADA, SENIOR INVESTMENT OFFICER,
IFC

8. Background
The Ministry of Education (MoE) is redirecting its public policy in education towards the single
shift system and need to build close to 31,000 new classrooms, both through PPP and traditional
public works.
Medellin and Barranquilla, respectively the second and third largest cities in Colombia, are at
the forefront of this pioneering PPP effort.
The selected concessionaire will finance, design, build, operate and maintain school
infrastructure providing non-pedagogical services: cleaning, catering, security, and
infrastructure maintenance. Pedagogical services are not part of the project.
Colombia´s leading Infrastructure development bank, the Financiera de Desarrollo Nacional
(FDN), and the International Finance Corporation of the World Bank Group are the lead
advisors.

9. Key numbers
Municipality Schools
Estimated
CAPEX
Classrooms
Complementary
areas*
Internal areas
(thousands m2)
Medellín 13
~ USD 90
millones
292 161 67
Barranquilla 8
~ USD 60
millones
272 86 52
* Complementary areas include kitchens, libraries, laboratories, play areas.
Number of schools by type of
construction
Medellín Barranquilla
Total reconstruction 7 1
Total reconstruction and
refurbishment
2 5
Total and partial reconstruction
and refurbishment
- 2
New build and refurbishment 1 -
New build 3 -

10. Transaction structure
A competitive tender process will be carried out in each municipality with the winner bidding
the lowest annual availability payment profile in present value terms; the project agreement is
for approximately 20 years: pre-operating phase of approximately 2-3 years, an operations and
maintenance period of around 17 years
The concessionaire will receive an annual availability payment for the remainder of the O&M
phase that covers development, construction, operation and maintenance and capital costs
The annual availability payment is subject to financial deductions should the concessionaire fail
to comply with any key performance indicator corresponding to the non-pedagogical services
For Medellin, 73% of the annual payment will be funded through a long-term earmarked annual
commitment from the MoE – i.e. sovereign country risk, while 27% will be likewise funded by the
city of Medellin – i.e. municipal risk. For Barranquilla the corresponding percentages are 80% and
20%

11. Tender process
The tender process is forecast to be launched in the second semester for 2019 and awarded in
early 2020.
Pre-bid, but not yet final bid documents, for Barranquilla can be found in the following link:
www.contratos.gov.co/consultas/detalleProceso.do?numConstancia=18-19-7560502
Pre-bid, but not yet final bid documents, for Medellin can be found in the following link:
www.contratos.gov.co/consultas/detalleProceso.do?numConstancia=18-19-7680939
Contact:
IFC: Alberto Losada (alosada@ifc.org); Rafael Umaña (rumana@ifc.org)
FDN: Carlos Alberto Sandoval (csandoval@fdn.com.co) ; Maria Patricia Sandoval
(msandoval@fdn.com.co)

12. Disclaimer
The Ministry of Education and its consultants reserve the right to substitute, eliminate, clarify,
rectify and/or modify the content of this document without notice. Any calculations,
projections, tables or charts included in this document are merely indicative and are for
illustrative purposes only.

13. THANK YOU
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