PESHAWAR: The IFC signed an agreement on Tuesday with the government of Khyber Pakhtunkhwa (KP) to help arrange a landmark public-private partnership (PPP) for the construction of a state-of-the-art hospital with up to 500 beds in the provincial capital Peshawar.

Peshawar’s population has increased by 52 percent over the last two decades. That has increased stress on the city’s healthcare facilities, which have been further exacerbated by the pandemic and an influx of patients from surrounding districts and neighboring Afghanistan.

Under the agreement, IFC, a member of the World Bank Group, will support the KP government in structuring the PPP transaction. IFC’s team will also assist the government in running a transparent, competitive bidding process to select a private sector developer and operator for the hospital, which will deliver tertiary care.

“The new hospital is expected to serve over 150,000 people annually and will be Pakistan’s first greenfield PPP in the healthcare sector. We believe it will serve as a model transaction allowing us to replicate the project for other much needed healthcare facilities,” said KP Chief Minister Mahmood Khan.

“This project is a monumental step towards fulfilling the KP government’s promise of increasing accessibility to quality tertiary healthcare across the province. It will demonstrate the ability of leveraging the Sehat Sahulat card to attract private sector investment in the construction and operation of tertiary care facilities,” said Taimur Khan Jhagra, KP’s Finance and Health Minister.

Peshawar is the sixth largest city in Pakistan with a population of approximately two million and accounts for nearly a third of total hospital admissions in KP. The new PPP complements a $400 million World Bank-sponsored project aimed at strengthening the province’s healthcare system.

“Quality, affordable and accessible healthcare is critical for Pakistan’s economic growth and development,” said Zeeshan Sheikh, IFC Country Manager for Pakistan and Afghanistan. According to a press release, the project is part of the World Bank Group’s strategy in Pakistan to support private sector development, create markets, and accelerate improvements in public service delivery.