Government of Chile to tender US$2.5 billion hospital concessions

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Government of Chile to tender US$2.5 billion hospital concessions

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The Ministries of Health and Public Works of the government of Chile have published a schedule for the tender of eighteen hospital concessions with a total investment of over US$2.5 billion.

Private partners will be sought to construct, equip and maintain the hospitals, with the Ministry of Health to take care of operations and clinical services.

This ambitious programme is set to commence shortly, with the first tender to be launched before December. It will cover three hospitals in the Maule Region of the country, located in the south. The new hospitals will replace facilities in Cauquenes, Constitución and Parral that were built in 2010 to replace those damaged by the earthquake.

The remaining tenders will be structured as such:

Tender date

Hospital

Region

Investment (CLP)

Investment (US$)

Q3 2019

Santa Bárbara

Biobío

30.662 billion

46.08 million

Q3 2019

Nacimiento

Biobío

22.07 billion

33.17 million

Q3 2019

Coronel

Biobío

120.555 billion

181.17 million

Q3 2019

Lota

Biobío

79.327 billion

119.21 million

Q4 2019

Buin-Paine

Metropolitan

108.398 billion

162.90 million

Q4 2019

Rengo

O’Higgins

89.52 billion

134.53 million

Q4 2019

Pichilemu

O’Higgins

9.916 billion

14.90 million

Q1 2020

La Unión

Los Ríos

64.171 billion

96.44 million

Q1 2020

Río Bueno

Los Ríos

64.292 billion

96.62 million

Q1 2020

Los Lagos

Los Ríos

Not available

-

Q2 2020

Coquimbo

Coquimbo

243.306 billion

365.64 million

Q2 2020

La Serena

Coquimbo

185.923 billion

279.41 million

Q3 2020

North Zone

Metropolitan

148.887 billion

223.75 million

Q2 2021

National Cancer Institute

Metropolitan

184.245 billion

276.88 million

Q2 2021

National Institute of Neurosurgery

Metropolitan

83.807 billion

125.95 million

TOTAL  

1.435 trillion

2.16 billion

As with the inaugural tender, the hospitals located in the Biobío, Los Ríos and Coquimbo regions will be tendered together, with one concessionaire to be awarded a contract for each region. It has not been decided whether the remaining hospitals will be tendered in similar regional blocks or separately. The government intends to make a decision after the first few block concessions have been awarded.

In order to make the tenders as attractive and competitive as possible, there is not expected to be any limits on the number of concessions that one company or consortia can bid for. Furthermore, the government will take on environmental risks and responsibility for land reclamation. This will both exempt the concessionaires from a potentially arduous bureaucratic process and enable construction to commence as soon as the concessions are awarded, ensuring prompt completion.

The tenders are part of the government's US$10 billion Health Investment Plan (Plan de Inversiones de Salud​), which will cover 57 hospital districts and deliver 12,400 beds across the country.

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