Page 27 - IB AUG 2018

Economy

option of offering jobs to a few
or all staff deputed to them
provided that the conditions
of employment are not less
favourable than the conditions
of their current jobs.
“The staff who accept the
offer from concessionaire will
terminate their employment
contracts with the govern-
ment. The staff who are not
offered jobs or are offered
jobs by the Project SPV but
do not accept the offer will
continue their employment
with the government and will
be redeployed to other public
health facilities.” reads the
tender document.
The tender documents re-
veal the Fiji Government will
make three streams of pay-
Fiji’s superannuation to ments to the Project SPV.
First will be an annuity payment for
Lautoka Hospital. These will be for in lieu
fund hospital privatisation of the SPV’s investment in developing,
equipping and maintaining the facility.
A similar annuity payment will be made
for the Ba Hospital for any investment in
developing, equipping and maintaining
“The private partner, identified and se- the facility.
lected through the tender process (selected The Fiji Government will also make a
bidder), will invest and subscribe to 20% monthly payment for the operation and
of the shares in the Project SPV by entering management of the two hospitals. This will
into a share purchase and share holding be based on invoices raised for services
agreement (SPSHA) with FNPF,” reads the provided to citizens at a fixed tariff.
By Anish Chand
tender document. The tender document also states the
FIJI’S National Provident Fund will form The selected bidder will have board ma- Fijian Government will make a one-time
a special-purpose vehicle or a limited jority of the Project SPV and once the share lump sum payment of US$7 million to the
company for a joint public and private subscription is concluded, the Project SPV Project SPV for immediate refurbishment
partnership project involving the Lautoka will sign the concession agreement with of the Lautoka Hospital. This payment
and Ba hospitals. the ministry. will be made once refurbishment has
A special purpose vehicle is a legal en- During this period, the Project SPV will been done.
tity created for a specific purpose. The Fiji be allowed to observe and examine exist- Potential tender bidders have also been
Government has announced that in order ing operations and assets at Ba Mission informed in the document that one of the
to improve provision of healthcare services Hospital and Lautoka Hospital for the medical investment incentives under the
at two hospitals in the western division, it purpose of conducting various studies Income Tax (Medical Investment Incen-
is going to adopt a public private partner- including environmental and social impact tives) Regulation 2016 is an income tax
ship with reputable health care providers. assessment. At the end of this period, the holiday for a period of ten years.
This agreement will also be aimed at project hospitals will be handed over to In terms of debt financing, the tender
developing and upgrading health care the Project SPV. documents reveal the Fiji National Provi-
infrastructure and services delivery in During the period of the concession dent Fund intends to provide 100% debt
the country. agreement, an independent monitor will financing for the Project, estimated at 80%
According to tender documents, the Fiji be procured to oversee the project and sup- of the Project cost.
Government will select a private partner to port both parties in managing the contract. The Project SPV has to furnish to the
for this project. The Fiji National Provident “The concession agreement will be for ministry of economy a performance
Fund (FNPF) will be the local entity that 23 years, further extended by 20 years security of FJ$7million (US$3.3m) and
will be part of the project. in the case of no material default by the maintain that throughout the duration of
According to information provided in Project SPV,” the tender document says. the concession agreement.
the tender documents, the FNPF will create The existing staff at Lautoka and Ba
a special purpose vehicle (SPV) as a first Mission Hospitals will be temporarily The Public Private Partnership tender
step. This new entity will then enter into a deputed to the Project SPV for a given closes on 15 August, 2018.
concession agreement with Fiji’s ministry period for each project hospital. During
of economy. this period the Project SPV will have the r achandftv@gmail.com

Islands Business,August 2018 27