Saudi Arabia’s Ministry of Health is seeking advisers to help it draft a framework to build about 3,000 mega and primary medical centres with participation of private sector as Riyadh looks to reduce costs and address the shortage of healthcare facilities in the kingdom.

The Health Ministry, at the end of last month, had sent out a request for proposals (RFP) to financial advisory firms to pitch for the transaction that will see 250 mega medical centres and 2,500 primary healthcare facilities in three phases, according to sources familiar with the matter, who asked not to be identified. The advisory firms are expected to submit their proposals to Riyadh by the end of April or early May, they added.

The ministry plans to develop at least five major and 50 smaller healthcare facilities in pilot role out of the project on private-public partnership (PPP) basis. The second, phase of the scheme will include 50 bigger and 500 basic health units whole the rest will be developed in the third phase.

It is, however, not clear when the government aims to start expansion of the healthcare infrastructure.

Saudi Arabia has an estimated 22 beds available per 10,000 people in the country, out of which, the ministry provides 13.1 beds while the rest is contributed by other government-related hospitals and a private medical establishments in the kingdom, according to 2015 report by the ministry, the latest available on its website.

Riyadh plans to enhance the provision of healthcare services across the country using the private sector. 

The kingdom has already turned to PPP model to develop several multi-billion dollar infrastructure schemes.In April Saudi Arabia awarded PPP deals for three airports in the kingdom. A consortium of Lebanon’s Consolidated Contractors Company (CCC), Munich Airport, and the local Asyad Holding has been appointed to develop and operate Taif airport, while a consortium of Turkey’s TAV and the local Al-Rajhi Holding Group has been selected for airports at Al-Qassim and Hail.

The awards follow a contract signed in March with TAV and Al-Rajhi Group to build and operate a new terminal at Yanbu airport for 30 years.

Riyadh will also finish planned and yet to be awarded rail projects including the Saudi Landbridge, the Mecca Metro and urban rail projects in Jeddah, Medina and Dammam on a PPP basis.

The kingdom is also looking to finalise the legal framework for PPP deals this year, sources told MEED in April.

A legal framework is widely expected to facilitate the development of a wave of projects in the kingdom, includes those in health and education sectors.

The proposed legislation follows the establishment of a central body under the Ministry of Economy and Planning, which will drive the country’s plans for further private sector participation in its economy.

The National Centre for Privatisation (NCP) has been created to plan and oversee the procurement of PPP projects and other private sector initiatives as the kingdom seeks to meet the privatisation targets identified in its 2020 National Transformation (NTP) and Vision 2030, MEED reported in March.