Cancer center PPP to result in P37 billion savings

MANILA, Philippines — The government is estimated to save up to P37 billion from the build-transfer-operate (BTO) arrangement for the University of the Philippines – Philippine General Hospital (UP-PGH) Cancer Center public private partnership (PPP) project, which is targeted to be rolled out within the quarter.

In a statement, the PPP Center said the BTO contractual arrangement for the UP-PGH Cancer Center, the first PPP project to be approved under the current administration, would free up fiscal space within the government.

“Through the BTO arrangement, it is estimated that the government will defray costs and save up to P37 billion throughout the 30-year cooperation,” the PPP Center said.

Last week, the National Economic and Development Authority (NEDA) Board chaired by President Marcos approved the P6 billion UP-PGH Cancer Center project.

As a PPP project, the private sector partner will be responsible for the design, finance, construction, and commission of the new standalone facility to be located within the UP-PGH campus in Ermita in Manila.

With a total capacity of 300 beds, the cancer center will bring together 150 existing PGH private beds and 150 existing PGH basic or ward beds, outpatient care, cancer diagnostics, and facilities for chemotherapy, radiotherapy, and oncological surgery.

As the implementing agency of the project, UP-PGH will provide all clinical services for free for poor patients, while the private sector is allowed to offer clinical services to self-paying patients in the dedicated private inpatient and outpatient areas.

Under the project, the private sector partner will also provide the major equipment both initial and replacement, undertake maintenance, and facilities management, including non-clinical services such as cleaning, catering, laundry, and security for the entire hospital.

“The partnership with the private sector will allow PGH to free up its non-clinical and non-core functions facility-wide which will ensure that both charity and paying patients enjoy the same standard of quality facilities and services,” the PPP Center said.

NEDA Secretary Arsenio Balisacan said earlier, there would be no privatization of PGH services.

“The government shall own the entire facility and PGH shall continue to operate as a public hospital,” he said.

UP-PGH plans to hold the investor’s conference and the formal rollout of the project within the first quarter of the year.

For the award of the project, there will be an open competitive bidding process based on the lowest annual payment.

The PPP Center is providing support to UP-PGH through technical assistance in the development, procurement, and implementation stages of the project.

“We are very pleased with the approval of the UP-PGH Cancer Center project. This highlights government’s commitment to realize the infrastructure development program outlined in our Philippine Development Plan. This whole of nation approach to development will help provide efficient public services to all Filipinos,” PPP Center executive director Ma. Cynthia Hernandez said.