IDB co-finances construction of Peruvian hospital

Proinversión, Peru’s private investment promotion agency, awarded a contract to the company IBT Health LLC for the development of the project following an international tender, and which will result in the construction of the ESSALUD Chimbote specialized hospital, located in Ancash, Peru.

ESSALUD is Peru’s social security entity.

This project will be executed through the Public-Private Partnership (PPP) modality, under the "gray coat" and "green coat" modality, with a referential investment amount of US$ 140 million, which will be 100% co-financed by ESSALUD (the Peruvian social security).

The hospital project, located in the city of Chimbote, includes the design, financing, construction, equipment, operation and maintenance of a specialized hospital and a multi-purpose clinic.

In addition, the concessionaire will build a temporary hospital to ensure the continuity of services during the construction of the definitive infrastructure. This project will benefit more than half a million policyholders in the department of Ancash, Peru.

Peruvian law firm Hernández & Cía. acted as local counsel to the Inter-American Development Bank in the financing structuring phase, which involved legal support during the development of the private investment promotion process and the design of the concession contract, as well as during the transaction phase, which involved legal support during the consultation and response stage from the entities and the market, as well as the interaction with the private sector.

The law firm’s team was made up of partner José Manuel Abastos, senior associate Natalia Gallardo and associate Ana Vidal.

Financial advisory services were provided by Chilean consulting firm Ikons.