State-run and private banks are extending a P5-billion syndicated loan facility to Life Nurture Inc. (LNI) to complete the state-of-the-art Makati Life Medical Center (Makati Life) under the public-private partnership (PPP) scheme.
LNI inked an omnibus loan and security agreement with state-owned Development Bank of the Philippines and Land Bank of the Philippines as well as Aboitiz-led Union Bank of the Philippines to bankroll completion of the former Ospital ng Makati Building 2 (OsMak 2) in the heart of Makati City. The hospital will be renamed Makati Life Medical Center.
Under the agreement, DBP will extend P2.5 billion in loans to LNI, followed by Landbank with P2 billion, and UnionBank with P500 million.
Of the total amount, a P3.5 billion tranche is payable in 10 years inclusive of two years grace period for principal repayment, a P1.2 billion payable in seven years as well as another P300 million in working capital line.
The loan facility was finalized after LNI signed a joint venture agreement with the city government of Makati to pursue OsMak 2’s redevelopment under the PPP arrangement in April last year, after complying with the city’s PPP Code and competitive Swiss challenge.
“As we move forward, we will strive to build and operate a hospital that will remain true to the principle of sustainable delivery of innovative and inclusive healthcare solutions. Makati Life is going to be a holistic healthcare facility,” Dr. Dennis Sta. Ana, president of LNI, said.
The proposed hospital, with a full capacity of 360 beds and 192 doctors’ clinics, would focus on three healthcare pillars — prevention, treatment and rehabilitation.
Equipped with state-of-the-art technology, Makati Life is set to start partial commercial operations with the opening of a 24/7 primary and urgent care facility within the first half of 2022 and start in-patient services with the first 100 beds towards the end of the year.
The second phase, including the launch of the Cardiac Center and operationalization of 200 beds, is targeted by the first half of 2023, while full completion with the cancer and wellness centers is scheduled in early 2024.
“Makati Life will be an inclusive hospital. It will expand Makati City’s platform for delivering social healthcare through the Yellow Card program. In partnership with the city government of Makati, we will provide the required level of treatment and care even to patients who can’t afford it, giving everyone a chance to attain better quality of life,” Sta. Ana committed.