The International Finance Corporation (IFC) will act as a lead consultant to the Zhytomyr City Council for the further preparation of the project “New Multidisciplinary Hospital in Zhytomyr”

On July 19, 2024, an agreement was signed in Vienna (Austria) between the International Finance Corporation (IFC), a member of the World Bank Group, and the Zhytomyr City Council to engage advisors and provide consulting services for the further preparation of the project “New Multidisciplinary Hospital in Zhytomyr” based on public-private partnership (PPP) and to support the transaction and select a private partner through a competitive bidding process.

The agreement was signed by Mr. Alfonso García Mora, Vice President of the International Finance Corporation (IFC) for Europe, Latin America and the Caribbean, and Mr. Sergiy Sukhomlyn, Mayor of Zhytomyr.

This project has been selected as one of the priority healthcare PPP projects in 2023 with the support of the International Finance Corporation (IFC). In cooperation with the IFC and with the support of international and local consultants and the PPP Agency, a preliminary project assessment has already been conducted, and a PPP Concept Note has been prepared.

The results of the preliminary assessment confirmed the project’s suitability (compliance with the features and criteria) and potential for PPP implementation, so the International Finance Corporation (IFC) and the PPP Agency (on behalf of the Ministry of Economy) will continue to provide comprehensive support to the Zhytomyr City Council in preparing the necessary studies for the quality preparation of the PPP Proposal, structuring the project and, if appropriate, preparing tender documents, organizing a tender to select a private partner and concluding the PPP agreement.

The project aims to address the existing problems in the healthcare network in Zhytomyr city related to outdated infrastructure and inefficiency of municipal hospitals with high maintenance and operating costs, fragmentation and duplication of services, resulting in suboptimal treatment conditions and quality of care.

To improve healthcare services for residents, Zhytomyr City Council plans to reorganize the city’s hospital network and consolidate the existing outdated, inefficient healthcare facilities into a single consolidated modern 400-bed multidisciplinary hospital that will provide various medical services, including surgery and therapy, and operate 24/7 for scheduled and emergency cases. This hospital will serve patients who need medical care during childbirth, strokes, and heart attacks, as well as provide care for newborns in case of complications.  

The proposed location for the hospital construction makes it possible to cover a large number of people, not only in the city but also in suburban and neighboring areas. This will allow for efficient use of the new hospital’s design capacity. The maximum capacity of the hospital is estimated at 400,000 people, which will ensure that the optimal workload and quality of services are maintained.

To implement the project, it is planned to attract a private partner to finance, design, build, equip and further maintenance of buildings, premises and medical equipment of the new consolidated hospital during the term of the PPP agreement in accordance with the output specifications and key performance indicators (KPIs) set by the city council. Medical services are not included in the scope of the PPP project (all medical services will be provided by municipal healthcare providers and their employees).

The project will help optimize the existing outdated hospital buildings, eliminate duplication of services, create a new facility designed in accordance with modern standards, improve clinical workflows and expand access to quality healthcare services for patients (including those with low incomes).

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As a reminder, the International Finance Corporation (IFC) acts as a strategic advisor to Ukraine, helping the Government to create conditions for increased private sector investment in the restoration of Ukraine’s infrastructure. The Memorandum of Understanding between the Government of Ukraine and IFC was signed in Paris on December 12, 2022.

A professional team of experts from various fields has been engaged to assist Ukraine in selecting projects and finding funding sources for their implementation. The PPP Agency, which is responsible for the direct preparation of PPP projects in Ukraine, actively participates in the expert group’s work to prioritize and select projects and their further preparation.