The Mexican Institute for Social Security and Services for State Workers (ISSTE) has awarded the contract for the development of a new hospital through a PPP project​ to Constructora y Edificadora GIA+A.

The hospital, located in Mérida (Yucatán) will have the capacity to accommodate 104 beds. The project involves the development of a new hospital under a design, build, finance, operate and maintain (DBFOM) contract with a concession duration of 25 years.

Constructora y Edificadora GIA+A requested an annual payment of 175.3 million pesos beating out proposals from Promotora y Desarrolladora Mexicana, Grupo Inmobiliario Marhnos and Constructora IGSA.

As we reported in June this was the second time the ISSTE launched the project. None of the five teams that submitted proposals were selected as preferred bidders. In a first selection three of the teams were rejected as they were declared insolvent and the other two groups that advanced to the final evaluation were Constructora y Edificadora GIA+A and Acciona. However the ISSTE discarded their proposals because significantly exceeded the ISSTE initial budget for the project.

In the first tender process, Constructora y Edificadora GIA+A offered bids for the value of MXN4.6 billion (US$246 million). In the second tender process, the company decreased the value to MXN175.3 million (US$9.46 million) per year, totaling US$236.5 million in 25 years. It was the lowest bid among the offers presented.

The project was a private initiative submitted by Constructora y Edificadora GIA+A in April 2014.