Health PPPs in Qatar: launch of PHC Bid!

Qatar published in September 2020 a call for Expressions of Interest for a large Public-Private Partnership healthcare programme. More specifically, the PPP in question will aim at the development of primary health care corporation centres.

Let’s row back a back as PPPs, as complex contractual arrangements, are relatively new in the Qatari legal landscape. While PPPs are part of an ambitious infrastructure investment agenda which will represent a total combined project value of $85 billion by 2030 (across all sectors)

In order to bolster the Qatari market attractiveness and entice investors, a recent PPP Law was enacted. Subsequent regulatory framework was provided through ministerial decrees.

Far from being a massive legislative breakthrough, this PPP law builds on existing contractual models already enabling a wide berth for private participation to large public infrastructure projects. French lawyer Arnaud Depierrefeu, Esq. clarifies that:

The PPP Law covers a wide array of possible forms of PPPs including the BOT model, the BTO model, a BOOT model and O&M model but also “the allocation of lands through lease or usufruct licenses” and “any other model approved by the Council of Ministers” (art. 3).

The legislation introduces innovation which was suggested by a large consultation of international legal firms, such as concession models allowing Project Company to generate revenues by recouping fees on users.

One of the idiosyncrasies of the PPP legal framework in Qatar is that it leaves only a restricted space to ministerial departments: while the absence of a PPP unit traditionally pegged to the Treasury may indicate that sector ministries are in charge of their own projects, the governance structure in Qatar means that in reality all public projects have to be approved by the Prime Minister, who will take advice from a project committee.

Against this backdrop, the Government of Qatar launched the above healthcare PPP. So what is it about? Qatar is looking at replacing two Primary Health Care Centres and building two new ones:

i. Madinat Khalifa PHCC (replacement),

ii. Umm Ghuwalina PHCC (replacement),

iii. Nuaija PHCC (new build), and

iv. Al Themaid PHCC (new build)

The Scope of the project spans DBFOM and provision of clinical services. More specifically it includes:

Design, construction, financing, maintenance and non-clinical operations and[clinical operations of the defined Centres, as deemed necessary for delivering the objectives of the Project.

The scope of provisions is detailed hereunder:

1. Financing of the project, including construction and commissioning
2. Facilities management (building systems and utilities)
3. IT infrastructure and services
4. Non-clinical support services (cleaning, waste disposal, security)
5. Clinical staffing and services (to be confirmed)
6. Clinical support services (laboratory service and pharmacy, to be confirmed)

A full concession, Alzira type? Consortiums have until 11 October to submit their expressions of interest. If you want to know more, download the Project Document/Call for EOI on this page, or click here to download.