Doubts over Polish hospital financing

According to sources close to the project, there are serious concerns over the level of volume risk and regulatory risk involved in the €40m project. One banker who was approached three times by the client described them as "risks that I would never have expected" on such a project.

The project reached commercial close in September last year with Interhealth Canada but must secure funding by a September 2012 deadline. The 30-year contract includes the design, build, finance and maintenance of a 352-bed hospital.

If financial close is successful, it is believed the project could open the door to a siginificant pipeline of regional hospital PPPs across Poland.

Earlier this year, preferred bidder Interhealth Canada said that Żywiec marks the beginning of its presence in Poland. "We consider that PPPs are fundamental as they enable the full transfer of operational risk," said Nasser Massoud, InterHealth global head of transactions & corporate development.