Pierre Oudot PPP Hospital, Bourgoin-Jallieu
The Pierre Oudot Hospital in Bourgoin-Jallieu, Isère in the Rhône-Alpes region is the fourth hospital PPP project in France to reach financial close that was part of the €4 billion government initiative - 'Hospital Plan 2007'
Last month Natixis and Société Générale closed the €158 million financing for the DBFMO of the new hospital [Transactions Database] 150-bed facility also closed last year.
Conclusion
The move towards PPP projects in the French hospital market in recent years is both politically and practically motivated.
In one respect the European Union will not have so much debt on the balance sheet, but also the PPP model is regarded as longer lasting, faster with a higher level of quality in the finished product. Traditional public procurement is often long, inaccurate and complex.
Following the success of the 'Hospital Plan 2007', the 'Hospital Plan 2012' will come into effect in 2008 and is expected to equal the previous €4 billion funds.
The future of hospital PPP projects in France currently looks healthy and is set to continue for at least the next five years, as soon as the 2012 plan comes in to play.
The project at a glance
| Project Name | Pierre Oudot Hospital |
| Location | Bourgoin-Jallieu, Nord Isère region, France |
| Description | A 380-bed DBFOM hospital financed as a PPP |
| Sponsors | GFC Construction - 9.5 per cent Exprimm - 9.5 per cent Caisse des Dépôts - 40.5 per cent FIDEPPP - 40.5 per cent |
| Operator | HÔNORIS |
| Project Duration (Including construction) |
35 years |
| Construction Stage | 3 years |
| Total Project Value | €158.5 million |
| Total equity | €15 million |
| Equity Breakdown |
GFC Construction - €1.4 million |
| Total senior debt | €143.5 million |
| Senior debt breakdown |
Natixis - 60 per cent €124 million long term loan (tranche A) |
| Senior debt pricing |
Euribor plus 10-20 bps - tranche A |
| Debt:equity ratio | 90:10 |
| Mandated lead arrangers | Natixis Société Générale Corporate & Investment Banking |
| Participant banks | Caisse d'Epargne |
| Legal Adviser to sponsor | Freshfields |
| Financial Adviser to sponsor | IXIS Corporate & Investment Bank |
| Tax and accountancy adivce to sponsor | Mazars |
| Legal adviser to hospital | Fidal Direction Internationale |
| Financial adviser to hospital | KPMG |
| Date of financial close | 16 April 2007 |
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