Project Briefer
July 2021
Philippine General Hospital Diliman Project
UP PGH Diliman Project Briefer July 2021
1. The project 03
2. Scope and structure 10
3 The process 15
4. Contacts 17
Contents
2
1
The project
4
The Philippine General Hospital
As the national university hospital and premier referral center, the Philippine General Hospital (PGH) is committed to quality service, training, and research.
PGH implements and continuously improves its Quality Management System (QMS) to conform with the requirements of patients, regulatory agencies,
other stakeholders, and the performance goals set by management.
● On Service – PGH ensures that all patients understand their conditions and are able to participate in their own treatments.
● On Training – PGH is the heart of the University’s Health Sciences Campus. It is in PGH that postgraduate and undergraduate students undergo
rigorous clinical rotations in various departments under the tutelage of leaders in the fields of medicine, nursing, and allied health professions.
● On Research – PGH continues to focus on research initiatives that impact on national health policies.
5
The goal of UP and PGH is to have PGH Diliman as a world-class hospital accessible to the poor, with related educational and research facilities.
The PGH Diliman is envisioned to be a new 700-bed
public hospital (with potential for further expansion
through an adjoining in-patient building, if needed in the
future) to be located in the Arboretum site within the
campus of UP Diliman in Quezon City and providing multi-
specialty services.
UP PGH Diliman Project Briefer July 2021
PGH Diliman Objectives
6
02Complement and enhance
capabilities and capacity of
PGH Manila
04Offer research and teaching hospitals
with innovations in medicine, oncology,
neuroscience, and sports medicine,
among others
PGH Diliman Project
Provide accessible world-
class healthcare to the poor
03Reduce increasing
overcrowding issues in
hospitals
01
7
Approximately 4.2 hectares fronting Central Ave., Quezon City
Classified as “other parks and major open spaces” and
not part of the “protected forest area”
Project Site
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The catchment area of PGH Diliman covers NCR and the contiguous provinces of Bulacan and Rizal**selected cities or municipalities within 30-kilometer radius
to PGH Diliman
UP PGH Diliman Project Briefer July 2021
Why is the PGH Diliman Project needed?
9
Lack of available
beds
Congestion in other
hospitals
Low bed-to-patient
ratio vs. peers
Increase healthcare
demand
01 02
03 04
The share of private hospital beds
increased from 46% in 2003 to 53%
in 2016. This contributes to the
disparity between the available beds
for high-income earners using private
hospitals and those of low-income
earners using public hospitals.
For public hospitals within the
indicated catchment area of PGH
Diliman, the ratio of hospital bed
per 1,000 population for Service
Patients is at 0.77, below World
Health Organization (WHO) standard
of 5.00 and below peers in the 1.21-
1.98 area.
Based on a World Health Organization
2018 survey, the average bed
occupancy for a Level 3 public hospital
in NCR was 103% in 2012. The
international benchmark for optimal
efficiency is 80-85%.
The total population within the
catchment area of PGH Diliman is
projected to increase by 20.2m
people by 2042. With this increase,
bed-to-patient ratio within the catchment
area may decrease further without
additional investments in healthcare
infrastructure.
2
Scope and structure
UP PGH Diliman Project Briefer July 2021
700 hospital beds
with potential for
expansion
2,000 outpatient
visits per day
80,000 sqm total
floor area
13,600 sqm
parking area
Project Sizing
11
Average bed
occupancy rate of
85%
36,196 in-patient
admissions/year
Estimated total project cost: PHP21,302m
UP PGH Diliman Project Briefer July 2021
Hospital Services
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Internal Medicine
Pediatrics Surgical OB/GYN NeurosciencesOrgan
Transplantation Program
OrthopedicsEmergency and Family Medicine
Vaccination and Travel Medicine
AnesthesiologyPsychiatry and
Behavioral Health
Ophthalmology
ENT DermatologyNutrition Science
Pain Management
Palliative Medicine and
Supportive CareCancer Care
ToxicologyCentre for Infectious Diseases
GenomicsComplementary
Medicine
Infertility and Difficult
PregnancyUrology
Employee and Occupational
Health
Infusion Services
Rehabilitation Services
Wounds/Burns Care
Pathology Services
Imaging Services
Clinical Services
Diagnostic Services
UP PGH Diliman Project Briefer July 2021
PPP Structure
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ServicePrivate
Partner
UP
Design and Construction of Building ✓
Equipment:
Procurement and maintenance of non-medical and minor medical equipment ✓
Procurement and maintenance of Major medical and IT infrastructure ✓
Clinical Services ✓
Facilities Management Services ✓
Hospital Management and Administration Services ✓
Client Support Services ✓
Research and Teaching ✓
Temporary relocation and resettlement of project affected informal settler families
(ISF)s
✓
● All facility
management services
will be included within
the PPP, as is common
for most hospital
infrastructure-based
PPP projects around
the world.
● All medical teaching
and research
activities will be
excluded from the PPP
and undertaken by
PGH.
Note: Structure is indicative and may be
subject to change
UP PGH Diliman Project Briefer July 2021
Contractual Structure
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Lenders SPVof PPP Partner
UP (Implementing
Agency)
Private
Partners/
Subcontractors
Investors/
Shareholders
Debt Equity
1Fixed Availability Payments Services
23
4Construction
Maintenance
Medical
Equipment
Non-Clinical
Services
Suite of Agreements:
1. PPP Contract between
UP and SPV
2. SPV Shareholders’
Agreement
3. SPV Loan Agreement
4. SPV Subcontractors
The PPP Company will receive a
monthly performance-based
availability payment (AP) from the
start of the operation of the facility
to the termination of the contract.
The payment is based on the first
year AP proposed by the PPP
Company in their bid.
Advantages of the private sector:
● Clinical services are excluded from the PPP scope,
reducing the complexity of services to be provided
by the private sector
● Private sector will be paid an Availability Payment
from the Government based on their bid, with
private patient revenue risk being retained by
Government
● Flexibility to operate potential ancillary businesses in
the hospital facility
Note: Structure is indicative and may be subject to change
Clinical services
3
The process
UP PGH Diliman Project Briefer July 2021
Proposed Tender Process - Two-Stage Bidding Process
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Stage 1 Stage 2
PQ Process Bidding ProcessContract Award and
Signing
Submission and evaluation
of prequalification (PQ)
documents (legal, technical
& financial) by prospective bidders
Submission and evaluation of
• Technical bid
• Financial bid
Winning bid will be determined based on lowest Availability Payment required.
Winning bidder compliance
with Notice of Award (NOA)
The Philippine Amended BOT Law (R.A. 7718) and its Revised Implementing Rules and Regulations (IRR)
will be followed for the bidding process.
4
Contacts
UP PGH Diliman Project Briefer July 2021
The Transaction Advisory Team
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University of the
Philippines
Lead Transaction
Advisor
Legal
Advisor
Various Technical
Advisors
Public - Private
Partnership Center
of the Philippines
Elvira A. Zamora
Vice-President for Development
University of the Philippines
Email: [email protected]
Maria Lerma L. Advincula
Director IV - Project Development Service
Public - Private Partnership Center of the Philippines
Email: [email protected]
Mary Jade T. Roxas - Divinagracia
Partner
Isla Lipana & Co. (PwC Philippines)
Email: [email protected]