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Saudi Arabia’s Ministry of Health and the National Centre for Privatisation & PPP (NCP) have awarded a public-private partnership (PPP) contract for the operation and management of the Sabic Specialised Behavioural Healthcare Hospital in Riyadh.

The contract was awarded to SEH Healthcare, a consortium comprising local firms Specialised Medical Company (SMC Healthcare) and Health Gates Complex, and Germany’s Dr Ebel Fachkliniken.

In a stock exchange filing on the Tadawul, SMC Healthcare said the total estimated project value is about SR3.8bn ($1bn).

“The scope of the contract includes medical and non-medical operations and maintenance, facility management, equipment management, and specialised clinical and non-clinical services in mental health and addiction treatment,” the statement added.

The contract term is 15 years.

The facility spans about 62,500 square metres and includes 150 beds, 19 outpatient clinics and six dedicated day-care rooms, as well as specialised services in mental health, addiction treatment, rehabilitation and aftercare.

The project is the latest healthcare project to be procured on a PPP basis in the kingdom. In May, Saudi Arabia’s Ministry of Health, the Ministry of Defence and the NCP issued an expression of interest and request for qualification notice for the Chronic Kidney Disease Care and National Dialysis Services project.

The NCP said the initiative supports Saudi Vision 2030 by increasing private sector participation in the healthcare sector.

In January, Saudi Arabia launched a National Privatisation Strategy, which aims to mobilise $64bn in private sector capital by 2030.

The strategy builds on the privatisation programme first introduced in 2018. It will focus on unlocking state-owned assets for private investment and privatising selected government services.

In a statement, NCP said the new strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.