The Brazilian state of Mato Grosso do Sul has obtained authorization to contract a loan from the Inter-American Development Bank (IaDB) as part of its plan to auction the PPP contract for the Mato Grosso do Sul Regional Hospital, which is expected to generate investments of BRL5.6 billion (US$1 billion).

State legislators approved the government’s request to take out a US$80 million loan from the IDB. The financing will help the Mato Grosso do Sul government meet its obligations under the hospital PPP. The project’s total value over the 30-year concession is BRL 5.6 billion (US$1 billion), of which BRL 966.8 million corresponds to infrastructure and equipment (capex), with the rest allocated to operating costs (opex).

The private sector will be responsible for works and investments for the construction of new blocks and the renovation of existing facilities, as well as the acquisition and installation of medical-hospital equipment, clinical furniture, and surgical instruments. The hospital complex will have 71,000 m² of built area, with the construction of two new blocks that will increase its service capacity by 60%, totaling 577 inpatient beds. The hospital will remain public, providing 100% free care through the Unified Health System (SUS) and with state-managed healthcare services, including medical, nursing, physiotherapy, occupational therapy, psychology, clinical analysis, and radiology services.