Euromoney awards the “Latin America Social Infrastructure Deal of the Year 2011” to the financial closure of the two hospitals concession in Chile envisaged to Grupo SANJOSE
08/03/2012

▪ The Ministry of Public Works of Chile, Ministerio de Obras Públicas (MOP), awarded SANJOSE the construction plus 15-year design-build- finance-operate-maintain concession of two hospitals in Chile in 2009.

▪ Maipu and La Florida hospitals, with a total joint built surface amounting to 140,000m², will provide the national Chilean health care system with 766 new beds.

▪ Maipu Hospital has already been recognised by AADAIH-Domus for its contribution healthcare environmental, social and economic sustainability.

The prestigious British magazine “Project Finance” (“Euromoney”) has awarded the financial closing of La Florida and Maipu hospitals concession, envisaged by the Ministerio de Obras Públicas (MOP) of Chile to Grupo SANJOSE in year 2009, the “Latin America Social Infrastructure Deal of the Year 2011”. The award ceremony took place last week in New York City with a total audience of 500 people, among which highlighted representatives of the most important global banking entities as well as many Latin American heads of state.

Grupo SANJOSE closed the financing for the UF5,465 million ($249 million) La Florida and Maipu hospitals concession in Chile on 11^th February 2011. The deal was the first healthcare concession in the country.

The construction plus 15-year design-build-finance-operate-maintain concession includes two hospitals in the Santiago metropolitan area. La Florida will cover 7,000m² with 391 bed and 560 car park spaces;  Maipú will cover 70,000m², 375 beds and 516 car park spaces. Constructora SANJOSE Chile is the engineering, procurement and construction contractor of the hospitals.

BBVA was lead arranger of the Project Finance amounting to $249 million equivalent term loan. Further, BBVA acts as financial adviser of the company and the local banking entities BBVA, Banco Bice, Banco Consorcio, Corpbanca, Banco Estado, Itau BBA, Scotiabank y Banco Security have participated in the financing leading to a 1,55x oversubscription.

Grupo SANJOSE incorporated in Chile a wholly-owned subsidiary, SANJOSE Andina, with a total share capital equivalent to $55 million. SANJOSE Andina is to own the concessionaire SANJOSE-Tecnocontrol, owner of the hospitals concession. Grupo SANJOSE intends to use SANJOSE Andina as a vehicle to continue bidding on the concession programme of the Government of Chile.

Total investment will be recovered with the proceeds of eight UF1.11 million annual payments equivalent to $411 million executed by the health ministry (MINSAL). On the other hand, the concessionaire will receive 30 semi-annual payments of UF 240,000 each, equivalent to $333 million, to cover operations.  Concession terms define variable payments for usage that goes beyond facilities’ design capacity.

Even though MINSAL and MOP have not awarded any new hospital concessions since La Florida and Maipu, the Government has announced a slate of ten planned hospitals. In fact, prequalification documents for the Antofagasta hospital have already been released.  

Miguel Zorita Lees, Chief Executive Officer of Grupo SANJOSE, says the Government of Chile has created a concessional model where the risk allocation responds to the requirements of the government, developers and investors; what has lead to project success. Zorita believes that other countries will benefit from the example and he is pleased with the Chilean hospital programme.

Zorita says that Grupo SANJOSE plans to bid on the new healthcare and transport infrastructure concessions in Chile: “Chile is a priority country for our Group. We are decided to strengthen our presence here and, therefore, we have provided a sound operative, financial and shareholding structure for the long-term”.

▌ Financial Closing of Maipu and La Florida Hospitals  in Chile

CONCESIONARIA SANJOSE - TECNOCONTROL

STATUS – Closed 11 February 2011

SIZE -$ 292 million (UF 6.3 million)

LOCATION - Santiago de Chile

DESCRIPTION – 18-year DBTOM of La Florida and Maipu hospitals

GRANTOR - Ministerio de Salud and Ministerio de Obras Públicas

SPONSOR - Grupo SANJOSE

EQUITY - 55 millones de dólares

DEBT - $233 million term loand and $16 million VAT revolver

LEAD ARRANGER - BBVA

PARTICIPANTS - BBVA, Banco BICE, Banco Consorcio, Corpbanca, Banco Estado, Itau BBA, Scotlandbank, Banco Security

FINANCIAL ADVISER - BBVA

SPONSOR LEGAL - Molina Rios (local), Ashurst (Spain)

LENDER LEGAL - Chadwick & Aldunate (local) Uria Menendez (Spain)

EPC CONTRAT - SANJOSE Constructora

FINANCIAL MODEL - Jeria, Martinez y Asociados

GENERAL CONSULTANT - PwC

TECHNICAL CONSULTANT - Cruz y Davila Ingenieros

INSURANCE CONSULTANT SEGUROS - Marsh