Bank loans

New hospital in Makati secures 5 billion peso bank loans

Lawrence Agcaoili – The Filipino Star

February 18, 2022 | 00:00

MANILA, Philippines – Life Nurture Inc. (LNI) has secured a 5 billion peso loan from a syndicate of banks to complete the state-of-the-art Makati Life Medical Center.

The banks consist of the state-run Development Bank of the Philippines, the Land Bank of the Philippines, and the Union Bank of the Philippines.

The facility provided to the project developer under a public-private partnership (PPP) would finance the completion of the construction of the former Ospital ng Makati Building 2 in the heart of the central business district.

Under the agreement, DBP would lend 2.5 billion pesos, Landbank 2 billion pesos and UnionBank 500 million pesos. Of the total amount, P3.5 billion is payable in 10 years, including a two-year grace period for repayment of principal, P1.2 billion payable in seven years and a fund line turnover of 300 million pula.

The loan facility was finalized after LNI signed a joint venture agreement with Makati City to pursue the redevelopment of OsMak 2 under the PPP deal in April last year, after complying with the code PPP of the city and the 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,” said LNI President Dennis Sta. Ana said.

When completed, the world-class hospital will have a total capacity of 360 beds and 192 medical clinics, with a focus on three pillars of healthcare – prevention, treatment and rehabilitation .

Along with co-founders, construction magnate William Scheirman, who also serves as LNI’s president, and medical internist and entrepreneur Dr. Randy Talamayan, LNI hopes to replicate the project in other parts of the country at the to come up.

“Our dream for LNI is to be a pioneer in hospital PPPs. We are honored to have Makati Life as our flagship project. We hope to modify and replicate the model in other cities and municipalities across the country. We believe that hospital PPPs are timely and necessary for inclusive progress in our nation’s healthcare sector,” Scheirman said.

Equipped with state-of-the-art technology, Makati Life is set to start partial business operations with the opening of a 24/7 primary and emergency care facility in the first half of 2022 and start inpatient services with the first 100 beds towards the end of the year.

The second phase, including the launch of the Cardiac Center and the operationalization of 200 beds, is scheduled for the first half of 2023, while full completion with the cancer and wellness centers is expected in early 2024.

“Makati Life will be an inclusive hospital. It will expand Makati City’s platform for social health care delivery through the Yellow Card program. In partnership with the Makati City Government, we will provide the required level of treatment and care even to patients who cannot afford it, giving everyone a chance to achieve a better quality of life,” Sta. Ana said.

Based on lessons learned from the COVID-19 pandemic, he said Makati Life aims to address the need for increased capacity and improved capacity of healthcare facilities in Makati City.

Makati Life aims to be a level 2 hospital, offering state-of-the-art medical facilities and services, comparable to Makati Medical Center and St. Luke’s Bonifacio Global City.

“For a business district as densely populated as Makati, with over 600,000 residents and around five million daytime residents, there are currently only two major hospitals. There’s definitely room for one more and Makati Life is designed to stay relevant and ready for the future,” Sta said. Ana said.