CLIENT: UTOPIA CONSULTING INSTERNATIONAL
Country: Nigeria
Sector: Health and Human Services
Service: Financial Management
Project: Hospital- Financial Feasibility Study, Develop Updated Financial Plans, and On-Going Financial Management Advisory Services
Project Description: IBS has been engaged by the Utopian Consulting International to provide financial feasibility study, develop updated financial plans, and on-Going financial management advisory services for Cross-River State in Nigeria Specialist Referral Hospital Project.
The UCI is a United States incorporated company with plans to build 105 bed Specialist Referral Hospital in Calabar, Cross River State Nigeria, dedicated to a state-of-the-art healthcare treatment and community health outreach programs for the indigenes in their communities. The proposed hospital was scheduled to open in 2014 (subject to funding). Currently, there are two secondary referral hospitals in Greater Calabar area (± 80 beds each, one specialized in infectious diseases), 12 secondary hospitals in Cross River State and over 100 small private facilities (basic primary & secondary, no integrated care) in Cross River State; However, there’s a lack of sophisticated diagnostics in Cross River state and neighboring states and lack of adequate emergency care. The main health needs are in:
- Communicable and Non-communicable diseases;
- Maternal and under 5-year-old care services;
- Integrated quality assured care (Diagnostics and Emergency care).
The proposed hospital is supported by the IMF and the IFC and the pre-requisite due diligence has been performed by these organizations to vet the viability of the project and UCI as a firm. Also, the project has been through several bidding stages at the IMF and UCI has won the approval to begin to engage in a Public Private Partnership (PPP) model with the Cross River State to build this hospital, which will serve not only the community but the neighboring states. UCI has acquired all the pre-requisite documentation and approvals to proceed with this project in addition to securing contracts with operating partners, equipment and medical expert partners, who will be vital in operating this hospital at an acceptable standard. The Cross River state government has dedicated in-kind contribution in both land and financial resources to help build this hospital with the help of private investment partners. Schematic of the proposed hospital.
In addition to the Cross River state government’s commitment to financing approximately 50 percent of capital costs required for the project, the State will make yearly and quarterly contributions, which will aid in the funding the operations of the hospital. All funding for the hospital is subject to UCI been a viable business partner thus allowing for the construction of the hospital to wit UCI will manage and operate as part of an SPV that will be controlled by UCI for 8 years with an exclusive first right of refusal option to renew for 2 more years. Cost estimates are being updated to reflect current economic conditions especially with the FX fluctuations.