Sector Programme Health and Family Planning, Lot 2 - Contracting out of Maintenance Services

Area of competence: 
Health Facilities and Services
Donor organization: 
KfW (KfW Development Bank)
Start of Project: 
End of Project: 
Value of service: 
€ 1,051,565
Partner Organisations: 
MEH Consultants
Description of Project: 

The Health Care Technology Policy of Nepal from 2006 included guidelines to promote rational management of health facilities and planning and procurement of medical devices, utilities, and facilities. It also outlined strategies on strengthening Physical Assets Management (PAM) through an inventory system, on supporting Institutional Capacity Building through the establishment of a separate PAM unit within the Ministry of Health and Population’s Department of Health Services (DoHS) which should plan, program, budget and monitor activities, and on establishing Public-Private Partnerships (PPP). These strategies formed the basis for Lot 2 of the Sector Programme Health and Family Planning, focussing on the availability of functional medical equipment in all (public) health facilities.
The specific objective was to establish a framework that would allow for effective and efficient maintenance of medical equipment through outsourcing of services to the private sector and capacity development within the DoHS to effectively monitor the performance of private service providers.

Description of Services: 

The services provided were based on a pragmatic approach of contracting out maintenance services for selected medical equipment by means of a PPP, and in parallel building the capacity of the Management Division (MD) at DoHS in the area of service procurement and management to ensure an efficient management of these maintenance contracts. In detail, the services comprised:
a. Develop and implement an outsourcing strategy on basis of the capacity of existing private maintenance service providers;
b. Develop and implement an inventory system, having assessed the quality of available data, which should serve as a management tool for maintenance contracts and will be the basis for decision-making on PAM;
c. Assist in the tendering and procurement of maintenance services, monitoring of contract execution and administration;
d. Support the MD in preparation and management of equipment and maintenance related budgets, and in the development of a concept and tools for a management fund;
e. Strengthen the capacity of the MD with regard to asset management and assistance in the establishment of a PAM unit;
f. Develop a Human Resources Development plan.

Project Volume: 
€ 1,235,565