PPP model proposed for renal dialysis services in Oman

The Public Authority for Privatisation and Partnership (PAPP), set up by Royal Decree last July to spur, among other things, private investment in strategic projects under the Public-Private-Partnership (PPP) model, is preparing to commission a study of a potential role for the private sector in the delivery of public renal dialysis services in the Sultanate.

An estimated 2,000 people currently require regular dialysis treatment for kidney ailments in the Sultanate – a public health service that imposes a hefty cost burden on the Ministry of Health estimated in the tens of millions of Omani riyals every year.  With diabetes, hypertension, and other non-communicable diseases on the rise – afflictions contributing to an uptick in dialysis treatment demand – the Ministry has been keenly exploring a role for the private sector in the operation and management of this increasingly critical health service.

“The Ministry of Health in the Sultanate of Oman intends to commission the services of a qualified consultant to conduct a feasibility study of Renal Dialysis Services in Sultanate of Oman,” the Public Authority announced in an invitation to interested parties to participate in a competitive tender for the contract.

“The tenderer shall be required to undertake market, commercial, medical clinical, technical and financial analysis to assess private-sector delivery of Renal Dialysis services,” it noted last month.

The selected consultant will be required to provide advisory services and policy guidance to the Ministry “on the operations, cost-effectiveness, and social impact of various modes of operations of Renal Dialysis units with special emphasis on the Private Public Partnership (PPP)” model, according to the Public Authority.

A key part of its remit is to establish a baseline for renal dialysis needs in the Sultanate in terms of forecasted beneficiaries, current delivery models and projected costs over the next 10 years. Additionally, the consultant will be required to evaluate the current operational efficiency of the renal dialysis units and propose science-based suggestions for improvement.

Importantly, the procurement of a private player in the delivery of renal dialysis services is proposed to cover all three regional centres encompassing the governorates of Muscat, North & South Al Batinah and Dakhiliyah.

An award for a Transaction Advisory mandate is anticipated in the third quarter of this year, according to the PAPP, which has been tasked with overseeing all strategic partnership, privatisation and Tawazun (offset) projects in the Sultanate.