The National Economic and Development Authority (NEDA) Board said Thursday it approved the detailed specifications and updated parameters, terms and conditions (PTCs) for the University of the Philippines-Philippine General Hospital (UP-PGH) Cancer Center Project.
Several significant changes were incorporated into the project PTCs to align with the provisions of Republic Act No. 11966, or the Public-Private Partnership (PPP) Code of the Philippines, and its implementing rules and regulations.
These revisions also aim to enhance the project’s financial sustainability over the concession period.
The updates include improvements in the annual payment mechanism and equipment supply and financing and requirements to meet recognized standards for global best practice. This is to ensure the facility will be designed in a way that allows PGH doctors to deliver patient care and teaching more safely and efficiently and be responsive to evolutions in technology and clinical practices.
Initially approved in February 2023, the project entails the establishment of a new 300-bed cancer hospital within UP-PGH’s Metro Manila campus, with 150 beds dedicated to sponsored patients, to serve underprivileged individuals, while the remaining 150 beds will cater to private self-paying patients in a dedicated wing.
The project will operate under a 30-year build-transfer-operate (BTO) concession model. The selected private partner will design, finance, construct and commission the hospital and procure, maintain and provide periodic replacement of medical and non-medical equipment.
The private partner will oversee non-clinical services such as facility maintenance, management, cleaning, laundry and catering, and relevant commercial activities such as parking, food and beverage, and retail outlets.
The selection of the private partner will be through an open, single-stage competitive tender based on the lowest first-year annual payment. Revenues from clinical services to private self-paying patients and commercial activities will enable the private partner to lower the annual payment, making the project more affordable given the numerous health infrastructure projects that the government has to provide budgets for.
“We are encouraged by the participation of four credible bidders in the tender process,” said Dr. Gerardo Legaspi, director of UP-PGH.
“Their feedback has been instrumental in refining the project parameters, terms and conditions. We hope this will make the process more competitive and attract additional bidders, leading to a project that stands a greater chance of attracting financing at a lower cost,” Dr. Legaspi said.