The Ministry of Health of Saudi Arabia (“MOH”) – has signed today a 20-year agreement with Tamasuk Holding Company (“Tamasuk"), a Saudi diversified infrastructure developer, and the Kuwait’s most prominent industrial conglomerate, Alghanim International to develop, finance, construct, equip, operate and maintain a new 244-bed state-of-the-art hospital in Madinah which marks the first healthcare Public Private Partnership (“PPP”) project to be signed under the Vision 2030 and the National Centre for Privatization's programme.
Al Ansar Hospital agreement was signed in the Emirate of Madinah under the patronage of His Royal Highness Prince Faisal bin Salman bin Abdulaziz Al Saud and with the presence of His Excellency Mr. Fahad bin Abdurrahman Al-Jalajel, the Minister of Health
The Al Ansar hospital is a critical healthcare project that will significantly increase the capacity, effectiveness and response time for the healthcare needs of the pilgrim population and the visitors to the holy city of Madinah.
Commenting on the occasion, Tamasuk's Chairman, Mohammed Al Balwi said: “We are incredibly proud to have been awarded this project. Tamasuk is committed to helping the Kingdom realise its objectives under the Vision 2030 program and to delivering this important healthcare project for Madinah and the Ministry of Health. Healthcare is a key area of focus for Tamasuk and we look forward to increasing our activity and presence in the sector in the years to come.”
Mohamed Fouad Alghanim, Vice Chairman/Chief Executive Officer – Alghanim International, said: “Today marks a significant milestone in Alghanim International’s journey in the Kingdom of Saudi Arabia, as we are proud to be contributing to the Kingdom's Vision 2030 goals through this significant foreign direct investment in Al Ansar Hospital PPP project. We are thrilled to have the opportunity to deliver this high-quality asset and services to Madinah and its pilgrims, and we look forward to working closely with our partners and stakeholders to bring this project to fruition.”
The project sponsors have emphasized their commitment to establishing a robust Environment, Social, and Governance (“ESG”) framework in conjunction with the hospital. As part of this initiative, the project will conform to the Leadership in Energy and Environmental Design (“LEED”) gold standard for energy efficiency. To spearhead this significant healthcare project, a new project company has been established in Madinah. Currently, detailed design and construction activities are in progress, and it is estimated that at its peak, the project expects to employ more than 800 personnel in Madinah, contributing to the local economy while fulfilling its goal of providing world-class healthcare services.
In addition to the investments provided by Tamasuk and Alghanim International, a group of banks has been chosen by the project sponsors to finance the project. This syndicate includes Alinma Bank and Riyadh Bank from the Kingdom of Saudi Arabia and Natixis Bank from France. This financing arrangement is expected to be the first ESG based structured financing for a PPP project in the Kingdom of Saudi Arabia, which highlights its commitment to sustainable and responsible investment practices.
The hospital is scheduled to be fully completed and begin its commercial operations in the middle of 2026. Tamasuk and Alghanim International will operate the hospital under a concession agreement with the MOH for a period of 20 years, following its completion. This partnership aims to bring quality healthcare services to the region while also ensuring long-term sustainability for the project.