FMO - IFC partnership

Who is our client

Under this partnership FMO has allocated EUR 1 million from the Development Accelerator to a trust fund managed by IFC, the investment arm of the Worldbank.

Funding objective

The funds will be used by IFC for preparation, structuring and tendering of public-private partnership (PPP) projects in water and healthcare, the two important sectors where the Netherlands offers advanced expertise. The arrangement aims to bring business opportunities to the market that are relevant for the Dutch private sector and at the same time create development impact in emerging markets. In 2019 two projects in the healthcare sector were selected by FMO and IFC.

PPPs for healthcare

Vietnam | With the co-financing of the DA, IFC will structure an outpatient, training, and diagnostics center in Vietnam with a total expected project size of USD100 million. Although the project is still in an early stage, the project structure foresees to include the Design, Build, Finance, Maintain and Operate model.

The Philippines |In the Philippines the IFC together with the co-financing of the DA, plans to develop a hybrid PPP structure for a commercial and charity hospital wing in Manila. The project was approved by the University of the Philippines and is due to receive central government approval in 2020, after which the tender documents will be published. The project structure foresees to include the Design, Build, Finance, Operation and Maintenance of the commercial and charity wings of the cancer hospital. The university will provide clinical staff for the charity wing, whereas the private sector is expected to provide clinical staff for the commercial wing.

FMO and IFC will work together to create interest for the PPP projects and tenders among potential Dutch investors by actively including them in investors conferences, market sounding and in matchmaking meetings. IFC has been a trusted partner of FMO for many years. With this arrangement, both parties aim to deepen the partnership and to benefit from IFC Advisory’s successful track record and expertise as PPP transaction advisors. Through this arrangement, FMO has access to 90 IFC PPP Advisory staff based in more than 20 countries.

Why we fund this project?

The cancer hospital in the Philippines intends to increase the capacity of oncology care in the country with approximately 400 beds. Since the project will have a commercial and a charity wing, the care will also be made available for lower income groups. In the Vietnam project, the main objective of the project is for the private sector to support the public hospital to increase the quality of the healthcare provided and the quality of training of medical staff.