For the management of Covid-19 the Ministry of Health is currently considering Public-Private Partnership (PPP) to construct

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Question:

For the management of Covid-19 the Ministry of Health is currently considering Public-Private Partnership (PPP) to construct a treatment center for Covid-19 cases and general health delivery in the countryside. The Ministry wants to use PPP to construct and manage modern wards at the countryside that will attract clients from the big towns in the country. The private sector will provide funding whilst the government will secure lands from the chiefs of the various chosen communities. The private sector will require the government to provide guarantee for the funds that they will borrow for the project. Currently some health services are provided free to all those registered with the National Health Insurance Scheme.

However when the PPP project is completed patients will be required to pay user fees. The estimated average user fee will be C50 per week for the first financial year of operation and this will be reviewed upwards to have funds to manage the modern facilities. To stimulate private sector interest in the project, the Ministry intends to protect the private sector against all risks and challenges associated with this project as much as possible. To ginger the local community up the Ministry would insist on the use of local materials and the employment of the youth from the area in the construction and management of the facilities. Training programs will be arranged for the youths. This project if completed is expected to open up the chosen rural areas and will be of immense benefit to all.

Required:

What are the principles and policies of Public-Private Partnership that the Ministry can use to determine the feasibility or otherwise of this project. Ascertain the risks and possible challenges that can befall this well conceived project and advice the Minister of Health of the possible PPP arrangements that can be used to achieve the objective of this project.