ThePrint ·
Why private firms are wary of bidding for Andhra Pradesh’s 10 medical colleges under the PPP model
One key reason private players are not bidding is the 33-year concession period after which they have to transfer ownership of the hospital and college to the government.
Hyderabad: The Andhra Pradesh government’s move to establish 10 new medical colleges in the state under the Public-Private-Partnership (PPP) model has hit a wall due to a tepid response from the private healthcare sector, two state health ministry officials told ThePrint.
Earlier this month, the Telugu Desam Party (TDP)-led National Democratic Alliance (NDA) government offered to partly finance the colleges through viability gap funding (VGF), but the tenders remain unopened because there were no bidders.
The state government requested VGF from the Centre for five hospitals it plans to construct at a cost of Rs 3,700 crore. Officials in the health department confirmed to ThePrint that an undisclosed sum has been received to commence construction work on the colleges.
