introduction to korean hospital ppp projects
TRANSCRIPT
Oct. 31, 2019
KHIDI Department of Global Healthcare (Outbound)
Introduction to Korean Hospital PPP Projects
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I. Introduction to Korean Public Hospital PPP Projects
1. Current State2. Definition of BTL (Build-Transfer-Lease) Project3. Structure of BTL4. Structure of Private Investment Return, Investment Recovery5. Implementation Procedure
II. Introduction to Public Hospital PPP Projects
1. Project Overview 2. Main Contents3. Project Promotion Process 4. Outline of Negotiations
III. Conclusion
Contents
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I. Introduction to Korean Public Hospital PPP Projects
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1. Current State Korean PPP projects are promoted in BTO or BTL Depending on their Types and Scales.
New construction or extension of hospitals is all done by BTL.
16 projects have been completed so far from the Local Hospital BTL Project in 2005 - 12 hospitals are in operation, and 4 hospital is being built. (Construction Stage 1,
Bid preparation 3)
Classification Project Stage Year
Geriatric Hospitals
(5)
Hwasoon Geriatric Hospital Construction BTL Project Open 2005
Busan City Geriatric Hospital (4th Hospital) Construction BTL Project Open 2008
Euiryung Geriatric Hospital Construction BTL Project Open 2008
Euisung County Geriatric Hospital BTL Project Open 2009
Hampyung Public Geriatric Hospital BTL Project Open 2009
Local Hospitals
(6)
Kangjin Hospital Relocation and Construction BTL Project Open 2005
Choongjoo Hospital Relocation and Construction BTL Project Open 2007
Seoguipo Hospital Construction BTL Project Open 2009
Gongjoo Hospital Relocation and Construction BTL Project Open 2010
Gyunggido Ansung Hospital Relocation BTL Project Open 2012
Gyunggido Icheon Hospital Construction BTL Project Under Construction 2013
National Hospitals
(2)
National Masan Hospital Modernization BTL Project Open 2011
Yeongjoo Red Cross Hospital Construction BTL Project Open 2011
In Progress
(3)
Samcheok Hospital Relocation and Construction BTL Project RFP Establishment 2019
Daejeon Hospital Construction BTL Project Preliminary Feasibility Study 2019
West Busan Hospital Construction BTL Project Preliminary Feasibility Study 2019
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2. Definition of BTL
A method of private investment in infrastructure, building of a public facility (e.g., public hospital), and leasing to the government to get back its invested capital.
Private company
builds a public facility
with its own investment
B
Concessionaire is granted
the right to operate the
facility and receive
government payment
(lease)
L Ownership of the facility is
transferred to the government
upon completion of construction
while the managing and operating
authority is retained by the private
company
T
B T L(Build-Transfer-Lease)
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Operation Investor(O&M)
ConstructionInvestor
(Design+Construction)
FinancialInvestor
S P V(CI+OI+FI)
Operation
ConstructionInvestment
Equity
Land Donation + Operation Service Lease + Operational Cost
3. Structure of BTL
SPV (Special-Purpose Vehicle) established by Private Investment, PlanningDesign-Finance-Construction-Operation (O&M)
Government
Construction
DividendPrincipal and
Interest
Equity/Debt
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Private Investment
Construction/Facility Investment
Operating Cost
Government Payment
Lease
Operating Cost
Affiliated Profit
Government pays the unitary charge covering the construction costs inclusive ofoperating costs
• Government Payment = Lease (Initial Cost) + Operating Cost – Affiliated Profit
• Facility (Construction) Cost: Annual Lease Payment by the Government
• Operating Cost: Annual Payment by government based on an agreement between the public and private sectors (based on its operational performance for a specific period of time)
• Affiliated Profit from Operating Other Supplementary Facilities. (Non-operating Revenue - Non-operating Expense)
4. Structure of Private Investment Return, Investment Recovery
Redemption
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BTL Feasibility Study & VFM Test & Application of Investment Ceiling
5. Implementation Procedure (General BTL)
Request for Proposal
• Condition of Project Implementation• Method and Schedule of Implementation• Determination of Aggregate Investment- Government Payment / Operating Cost• RFP• Inspection of Performance / Evaluation /
Application
Announcement of RFPs
Evaluation and Selection of Preferred Bidder• 1st PQ Evaluation• 2nd Business Plan Evaluation• Selection of Preferred Bidder
Negotiation and Contract Award
• Negotiation• Designation of Concessionaire
Selection of Implementer
Application for Approval of Detailed Implementation Plan
Construction
Construction Implementation
• Quality Assurance/Quality Control• Equipment Ordering/Installation Management• Compliance of Applicable Technology
Completion of Construction
Operation
• Completion Inspection Confirmation• Concessionaire in Operation
Submission of Project Proposal
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II. Introduction to Public Hospital PPP Projects
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1-1. Project Overview – Gongjoo Hospital Relocation and Construction BTL Project
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Construction Overview
Classification Finally Negotiated Results
Site Location Choongnam Gongjoo-Shi Ungjin-Dong 253-2
Site Area 33,000㎡ (9,982.5 pyeong)
Special-Purpose ZoneDesignated as Green Zone, Urban Zone, and Comprehensive
Medical Facility Zone
Legal Building-to-Land Ratio / Floor Area-to-Site Ratio
Less than 20% / Less than 80%
Total Building Area 31,539㎡ (9,540 pyeong)
Parking Space 314 Vehicles in all
Number of Beds 361 Beds (including contingency beds)
1-2. Outline of the Project
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Major Services Basic Medical Care: In-Patient, Out-Patient, and Emergency Care (District Emergency Center
in Operation), Health Checkup Special Care: Hemodialysis, Specialization Center, Palliative Care, Oriental Medicine Care, etc. Public Services: Infectious and Chronic Conditions Management, Traveling Free Care, Free
Care, Foreigners and Homeless Care, Domestic/Sexual Violence Care, Youth in Need Care, etc. Funeral Hall
Medical Departments : 16 in all
(14 Regular Departments, 2 Optional or Irregular Departments)
Project Purpose: Local Hospital (District Public Hospital Modernization Project)
ClassificationInternal Med.
SurgeryCardiothoracic
SurgeryOb/Gyn
Pediatrics
Psychiatry
Orthopedics
Neurology
Neurosurgery
Urology
Rehabilitation
Anesthesiolog
y
Radiology
PathologyLab
Dentistry
Ophthalmolog
yENT
Relocated and Newly Built
Hospital○ ○ ○ ○ ○ - ○ ○ ○ ○ ○ ○ ○ ○ ○ ▲ ▲
Note) ▲ : Optional Opening or Irregular Departments
2-1. Main Contents
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Bed TypeTarget Bed Number
Bed Planning
2nd In-Hospital Care for Acute Cases
General Acute Conditions
230 60 General Beds (Per Unit) × 3 Units = 180 Beds
60 Mixed Beds (50 Beds + Isolated 10 Beds) × 1 Unit
= 60 Beds
60 Rehabilitation and Nursing Beds (Per Unit) × 1 Unit
= 60 Beds
20 Intensive Care Beds × 1 Unit = 20 Beds
Contagious and Isolated Cases
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Nursing and Rehabilitation
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Total 3005 Wards, 1 ICU
6 Wards in all (320 Beds, 300 Beds without IC Beds)
2-2. Main Contents
Bed Distribution
Target Bed Number: 300 Beds
Acute Conditions 2nd Care Bed Number: 240 Beds(Including 10 Isolated Beds for Contagious Cases)
Nursing and Rehabilitation Bed Number: 60 Beds
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ClassificationFunctional Classification and Spaces
Function Functional Spaces
In-Patient Wards
General Ward Standard Ward
Mixed Ward General Ward + Isolated Ward
ICU Comprehensive ICU (Internal Medicine, Surgery), Cardiovascular Treatment Room, Isolated Room
Out-Patient Care
General Outpatient Services Internal Medicine Dept., Surgery, Specialization Center, Others, Oriental Medicine, etc.
District Emergency Care Center ER
Others Patient Day Care Center, Health Checkup Center
Central Care
Surgery and Delivery OR, Delivery Room, and Neonatal Room
Imaging/Testing/TreatingRadiology, Pathology Lab, Anatomic Pathology Lab,
Physiological Function Test Room, Rehabilitation Treatment Room, Hemodialysis Room
Secondary Services
Pharmaceuticals and Supplies Pharmacy, Central Supply Room, Central Storage
Food Supply and Laundry Patient Meal Kitchen, Employee Cafeteria, Laundry Room
Funeral Services Funeral Hall
Others Mechanical and Electricity Room, Facility & Equipment Management Room
General Management and
Others
General ManagementHospital Management, Administration, Medical Record Room, Nursing Department, Management Team,
Administration Team, etc.
Education Facility Auditorium, Doctors’ Research Room, Hospital Staff Room, Staff Dormitory, Library, etc.
AmenitiesEmployee Amenities, Hair Salon, Barber Shop, Lockers, Flower Shop, Bakery Shop, Convenience Store,
Prayer Room, etc.
2-3. Main Contents
Hospital’s Functional Units
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- Dec. 2010, Private Investment Limit Approved
(KRW 54.1 Billion, 300 Beds)
- Sep. 2011, RFP (Request for Proposal) Established
- Nov. 2012, Project Announced
- Mar. 2013, Project Planning Report Evaluation and Selection of First
Negotiation Targets
- Mar. 2014, Conclusion of Agreement and Project Implementer
Designation
- Sep. 2014 Final Design Completed
- Aug. 2016, Construction Work Completed
- Sep. 2016, Move to New Hospital
- Oct. 2016, Opening (Nov. 10)
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Stage 6
3. Project Promotion Process
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Negotiation Period: Mar. 16, 2013 ~ Mar. 25, 2014 (approx. 12 months)
Composition of Negotiation Team
Managing Authorities
- KHIDI
- Technical/Operational/Financial/Legal Consulting Committee
- Choongnam Provincial Government and Gongjoo Hospital Persons in Charge
First Negotiation Targets (Project Implementers)
- Gongjoo Medical Center Corporation: A Consortium of 7 Companies including Construction Company, Financial Investors, Operators, etc.
Setting of Management and Operation Rights
The project implementers obtain management and operation rights after paying their donations to the managing authority at the time of completion of building construction
Period: 20 Years (2016∼2036)
4. Outline of Negotiations
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1. Gongjoo Hospital Relocation and Construction BLT Project
181. Gongjoo Hospital Relocation and Construction BLT Project
191. Gongjoo Hospital Relocation and Construction BLT Project
201. Gongjoo Hospital Relocation and Construction BLT Project
211. Gongjoo Hospital Relocation and Construction BLT Project
222. Gyunggido Icheon Hospital Construction BLT Project
232. Gyunggido Icheon Hospital Construction BLT Project
243. National Masan Hospital Modernization BLT Project
253. National Masan Hospital Modernization BLT Project
264. Yeongjoo Red Cross Hospital Construction BLT Project
274. Yeongjoo Red Cross Hospital Construction BLT Project
284. Yeongjoo Red Cross Hospital Construction BLT Project
294. Yeongjoo Red Cross Hospital Construction BLT Project
Thank you.
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