BAKU, Azerbaijan, September 18. The European Bank for Reconstruction and Development (EBRD) is considering up to $158 million in financing for an 800-bed hospital in Uzbekistan’s Fergana region, with the Azerbaijan-Uzbekistan Investment Company (AUIC) among the project consortium members.
This was reflected in the statement by the EBRD.
The proposed financing package comprises a senior secured loan of up to $120 million and an equity bridge loan of up to $38 million. The funds would support the design, construction, equipment, maintenance and handover of the medical complex.
The project will be implemented under a 23-year public-private partnership (PPP) agreement signed with Uzbekistan’s Ministry of Health.
The total project cost is estimated at up to $340 million. In addition to the proposed EBRD financing, the project is expected to receive funding from sponsors in the form of shareholder loans, as well as financing from other international development institutions.
The borrowers will be special-purpose companies beneficially owned, on a parity or shareholding basis, by members of the international consortium, including Saudi Arabia’s Vision International Investment Company (Vision Invest), KOC Construction Mekanik Elektrik LLC FE and the Azerbaijan-Uzbekistan Investment Company (AUIC). AUIC is a joint investment vehicle established by the governments of Azerbaijan and Uzbekistan to support bilateral economic cooperation and investment projects.
The medical complex will have 800 beds and is expected to expand access to advanced healthcare services, including cardiac surgery, neurosurgery and transplantation.
Based on the disclosed figures, the EBRD’s proposed financing of up to $158 million would cover about 46.5% of the project’s estimated $340 million total cost. The remaining amount of up to $182 million would be expected to come from sponsors and other international development institutions.
The project is expected to be one of Uzbekistan’s major PPP initiatives in social infrastructure and could establish a model for similar healthcare projects in the region. The hospital is planned as a comprehensive medical facility, with financing covering not only construction but also equipment, technical maintenance and the eventual handover of the facility.
The EBRD’s Board of Directors is scheduled to consider the proposed financing on October 21. The project has also been developed with strategic support from the International Finance Corporation (IFC), a member of the World Bank Group, and financial support from Germany’s Federal Ministry for Economic Cooperation and Development (BMZ).
The consortium previously signed an agreement with Uzbekistan’s Health Ministry for the development of the medical complex, which is expected to be implemented over a 36-month construction period.
