Arrangement of modular hospitals within the framework of Ukraine-France cooperation

Sector
Healthcare
Stream
Ensuring access to quality medical care through the development and modernization of medical infrastructure facilities
Maturity level
74
Project Status
Preliminary Investment Feasibility Study
Entry into Portfolio
State level of SPP
Investment Feasibility Study
Implementation
Completion

General information

Description of the project

The project was developed to carry out the internal procedures necessary for the entry into force of the Framework Agreement between the Government of Ukraine and the Government of the French Republic on official support for the project to install modular hospitals», concluded on June 11 in Berlin, Germany.

For the purpose of implementing the project, a draft Law of Ukraine “On Ratification of the Framework Agreement between the Government of Ukraine and the Government of the French Republic on official support for the project to install modular hospitals» has also been developed. The project envisages attracting official support for the Government of Ukraine in the form of a concessional loan from the French Treasury for a maximum amount of 35,000,000 euros, provided for the purpose of financing the implementation of the project to install modular hospitals.

The lender will be the Government of the French Republic, represented by the Bpifrance Assurance Export bank (Institutional Affairs Directorate), which will act on behalf of and in the interests of the French parties. The Borrower will be Ukraine, represented by the Minister of Finance of Ukraine or the Head of the Debt Agency of Ukraine. The Project will be implemented on the basis of a relevant contract(s) providing for the implementation of design and construction, which will be developed in accordance with the form of contract of the International Federation of Consulting Engineers (FIDIC). The contract will be concluded between the Project Implementation Entity (designated by the Government of Ukraine) and the French Supplier – by the French company Ellipse Projects SAS. The list of healthcare institutions for the benefit of which the project will be implemented, the entities implementing them, the feasibility and priority of each such project, other issues, including financial ones, regarding the implementation of the Project will be determined by an additional decision of the Government of Ukraine.

The total cost of the project is 35,000,000 euros.

At present, the project will not have an impact on the revenues and expenditures of the state and/or local budgets and will not require funding from the state or local budgets. 

The purpose of the project

Main goal:

Improving the condition of infrastructure

Secondary goal:

Creation of new facilities and services, Meeting demand

Description of the purpose of the project and ways to achieve it

The project was developed to carry out the internal procedures necessary for the entry into force of the Framework Agreement between the Government of Ukraine and the Government of the French Republic on official support for the project to establish modular hospitals", concluded on June 11, 2024 in Berlin, Germany. For the purpose of implementing the project, a draft Law of Ukraine "On Ratification of the Framework Agreement between the Government of Ukraine and the Government of the French Republic on official support for the project to establish modular hospitals" has also been developed. The project provides for attracting official support for the Government of Ukraine in the form of a concessional loan from the French Treasury for a maximum amount of 35,000,000 euros, provided for the purpose of financing the implementation of the project to establish modular hospitals. The lender will be the Government of the French Republic, represented by Bpifrance Assurance Export (Institutional Affairs Directorate), acting on behalf of and in the interests of the French party. The borrower will be Ukraine, represented by the Minister of Finance of Ukraine or the Head of the Debt Agency of Ukraine. The project will be implemented on the basis of a corresponding design and construction contract(s), which will be developed in accordance with the International Federation of Consulting Engineers (FIDIC) form of contract. The contract will be concluded between the Project implementation entity (determined by the Government of Ukraine) and the French supplier - the French company Ellipse Projects SAS. The list of healthcare institutions for whose benefit the project will be implemented, the entities implementing them, the feasibility and priority of each such project, and other issues, including financial ones, regarding the implementation of the Project will be determined by an additional decision of the Government of Ukraine.

Problems and solutions resulting from project implementation

Today, the direct losses of the system from daily Russian attacks on Ukrainian hospitals are ten times less than indirect losses (data from the World Health Organization and the World Bank, RDNA5 study). The primary factors are missed diagnostics, lost new cases of the disease, significant internal migration processes, limited access to quality services and modern technologies, late appeal for help, prioritization of one's own safety over health, and general traumatization of the population. At the same time, the number of medical services and their complexity is growing every day, despite the demographic crisis. These losses can be compensated and (or) minimized, including through investments in infrastructure and technological solutions that will allow for a leap in the quality of medical care and echo modern, patient-oriented conditions for the provision of medical services, thereby stimulating their demand and the efficiency of their provision. Currently under consideration is the construction of a new hospital complex in Nizhyn, Chernihiv region Risks associated with achieving expected results and proposed measures to mitigate and manage the risk. Focus on risks at the preparation, procurement, construction and operation stages of the project).

Socio-economic context

Indicator

Value

Other economic

24 thous. people

Other economic

40 %

Other economic

85 %

Strategic Case

Strategic feasibility of the project

Sector

Healthcare

Subsector

Specialized medical care

Stream

Ensuring access to quality medical care through the development and modernization of medical infrastructure facilities

Strategic document

Strategy for the Development of the Healthcare System until 2030

Task

Strategic goal 1 Ensuring universal access of the population to quality medical services and tools for implementing the right to health

Project objectives

Indicator
Base value
Target value
Number of examinations performed in the diagnostic department (X-ray, endoscopy, mammography)
0 thous. people
10 thous. people
Number of renovated emergency departments with proper infrastructure for emergency medical care
0 units
1 units
Number of new hospital beds put into operation
0 units
78 units
Share of equipment that meets modern standards
10 %
100 %

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

What methodology was used to estimate demand?
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]

Does the demand forecast take into account the latest demographic and economic forecasts?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
12 thous. people
Annual demand for services/infrastructure
2
13 thous. people
Annual demand for services/infrastructure
3
14 thous. people
Economic justification

Analysis of the project's impact on ecology and climate change

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

None of the options are applicable

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project provide for improving women's access to services?

The project will create jobs available to women (temporarily or permanently)
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to safe water, food, and medical services
[Response was provided in the Preliminary Investment Feasibility Study]

Are civil society organizations representing women and vulnerable groups included in the consultation process?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]

Alternative technical solutions

Technical Solution 1

Construction of a modular department on the basis of Nizhyn City Hospital within the framework of international cooperation with France

Technical Solution 2

Reconstruction of the existing building without involving international technical assistance

Total costs2'696'400'000 UAH3'188'400'000 UAH
  • For preparation
    • 103'080'000 UAH103'080'000 UAH
  • For implementation
    • 1'576'920'000 UAH1'576'920'000 UAH
  • For operation
    • 1'008'000'000 UAH1'500'000'000 UAH
  • For closing
    • 8'400'000 UAH8'400'000 UAH
    Average annual costs50'400'000 UAH1'500'000'000 UAH
    Project duration, incl.28 months8 months
  • Deadline for developing a FFS
    • 4 months3 months
  • Implementation period
    • 24 months5 months
    Service life240 months240 months
    Target indicatorsDefined Not defined
    Technical Solution Status
    Active

    [The technical approach was selected for further detailed analysis or implementation.]

    Pending

    [The project initiator has not taken any decision about this alternative technical approach.]

    Commercial Justification

    Supplier and contractor market assessment

    Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Is the project of interest to small and medium-sized enterprises?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Will the project involve national or international suppliers and contractors?
    Yes, both national and international

    [Response was provided in the Preliminary Investment Feasibility Study]

    Has an analysis of available procurement options been conducted for the technical solution?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Financial justification

    Total project budget

    Total preliminary budget2'696'400'000 UAH3'188'400'000 UAH
    Capital costs2'696'400'000 UAH3'188'400'000 UAH
    Operational costs0 UAH0 UAH

    Preliminary cost breakdown

    Operating costs for implementation0 UAH0 UAH
    For preparation103'080'000 UAH103'080'000 UAH
    For implementation1'576'920'000 UAH1'576'920'000 UAH
    For operation1'008'000'000 UAH1'500'000'000 UAH
    For closing8'400'000 UAH8'400'000 UAH
    Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
    Yes
    [Response was provided in the Preliminary Investment Feasibility Study]

    Average project cost per service recipient

    Service UnitЗвернення пацієнта
    Service Unit Cost18'712 UAH

    Profitability of the project

    Is the project expected to generate income?NoNo
    Is the project self-sustaining?No

    Availability of services

    Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
    Not applicable – the project does not provide for the provision of paid services or the establishment of tariffs

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project Financing Mechanisms

    Are funding sources and mechanisms identified?

    Source and MechanismYesNo

    Public-private partnership

    Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
    The project does not fall under the PPP format by its nature/character

    [Response was provided in the Preliminary Investment Feasibility Study]

    Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
    No

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management Rationale

    Team competencies

    Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
    Strategic justification - analysis of the strategic feasibility of the project

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - economic analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - communication with stakeholders

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - risk management

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - social and gender analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - public consultations

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic feasibility study - technical expertise

    [Response was provided in the Preliminary Investment Feasibility Study]

    Business case - analysis of available procurement options

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - legal support

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - SDG compliance analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - working with international financial organizations (IFOs)

    [Response was provided in the Preliminary Investment Feasibility Study]

    Financial analysis - financial analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - demand analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Business case - analysis of the market environment

    [Response was provided in the Preliminary Investment Feasibility Study]

    Does the team have experience implementing similar projects?
    Partially, we have limited experience

    [Response was provided in the Preliminary Investment Feasibility Study]

    Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
    None of the options are applicable
    Is there an understanding of where to find relevant experts and consultants?
    No, I need help.

    [Response was provided in the Preliminary Investment Feasibility Study]

    Risk assessment

    Technical riskDefinedUndefined
    Other riskDefinedUndefined
    Results of the feasibility analysis
    Project Preparation Program Engagement and Funding Needs

    Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?

    No
    [Response was provided in the Preliminary Investment Feasibility Study]

    Does the project require preparation assistance from Project Preparation Programs (PPF)?

    None of the options are applicable
    Need for financing

    Does the project require additional funding for preparation?

    No
    [Response was provided in the Preliminary Investment Feasibility Study]

    Project Approval History

    DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
    02/03/2026SP-N-020326-09AB2DA6State SPPreliminary Investment Feasibility StudyAwaiting review--
    03/03/2026SP-N-030326-8AE1B0CFState SPPreliminary Investment Feasibility StudyAwaiting review--
    03/03/2026SP-N-030326-BAD45B65State SPPreliminary Investment Feasibility StudyInclude--
    17/03/2026SPP-N-170326-3A48792AState SPPPreliminary Investment Feasibility StudyIncludeAccording to the minutes of the meeting of the Strategic Investment Council dated 12.03.2026 No. 1674