Update on Development and Construction of Hospital Project in Costa Rica
Vancouver, BC, Canada – April 21st, 2021 – Minaean SP Construction Corp. (TSX Venture Exchange: MSP; Berlin and Frankfurt Stock Exchanges: NJA) (the “Company” or “MSP”) is pleased to announce that the “CONSTRUCTION OF CHILDREN’S HOSPITAL” project in San Jose, Costa Rica is under progress.
The Project known as “TOWER OF HOPE” for providing treatment and care for children and youth up to the age of 15 has been on the priority list of the Government of Costa Rica – Ministry of Health. The CEO and the team members of Minaean SP Construction Corp., who made several visits to the capital city San Jose during the years 2018 and 2019, were initially asked to submit a proposal for the construction of “LIMON HOSPITAL” to serve the population of the Port city of Limon, on the east coast of Costa Rica. With the government’s plans regarding construction of a cruise port terminal at Limon Port getting delayed, it was communicated to MSP at a high level meeting held with government officials in 2019, presided by the First Lady, to submit a request for construction of “Tower of Hope” Children’s hospital on a sole sourced model. The US$ 80 million project to be executed by Minaean SP Construction Corp. through a Special Purpose Vehicle (SPV) set up in Costa Rica was initiated and a preliminary proposal was submitted. A Letter of Intent for financing the project was received from a large North American financing institution as required by the Government of Costa Rica. The proposal was then submitted by the department concerned for parliamentary approval for financing and execution through a sole sourcing model.
Due to the COVID situation, the government’s priorities changed during the past 14 months and the Tower of Hope Hospital project along with many others were put on hold due to deteriorating economic conditions. The Company has now been informed that the government would like to revive the discussions on the construction of Tower of Hope as well as Limon hospital.
The National Children’s Hospital which is currently in use was built over fifty years ago and remains the only pediatric critical care hospital of the country and is overcrowded due to the limitations of physical space in areas and fails to comply with current regulations. As per the National Healthcare Association the country needs a modern, high-tech facility, with adequate space and technical personnel, professional and sufficient to address the healthcare problems of the children in the country. The need for a more specialized new hospital to deal with the increase in the complexity of pathologies, risks and nosocomial infections and deal with the increase in surgical waiting lists has been considered to be of a high priority by the Government of Costa Rica.
The construction and equipping of the “Tower of Hope” Project is characterized by its high level of specialization, complexity and magnitude. At the current level of technical analysis conducted, an area of construction is estimated at 20,264 sq. mtrs at a total budgetary cost of US $80,000,000 including the building and equipment.
Costa Rica is located in Central America and borders the Atlantic and Pacific Oceans, Nicaragua and Panama. It is politically divided into three levels: 7 provinces, 81 cantons and 463 districts.
Costa Rica provides universal healthcare to its citizens and permanent residents through the public Costa Rican Social Security Fund or CCSS (Caja Costarricensee de Seguro Social). In addition, there is a large private healthcare sector, which offers shorter waiting times and allows the selection of your preferred doctor. Costa Rica is also a popular destination for medical tourism due to its cost and climate. Costa Rica’s population has increased by over 50% between 1990 and 2015. Additionally, the infrastructure and equipment in some health facilities has deteriorated so seriously, that it creates problems to the effectiveness and efficiency in supplying health services. Both the public and private sector are continuously improving to accommodate the increased demand and complexities of the nation’s healthcare needs. This includes large investments for the renovation of and new construction of infrastructure.
About the Company
Minaean SP Construction Corp. is a company well known for its pioneering efforts in the manufacture of light gauge steel components for the construction industry and modular metal buildings in India. The strong, affordable, ecologically sustainable structures present a promising solution to the mass housing shortages in developing countries in addition to a range of conventional applications. The company is an affiliate of well known construction conglomerate “Shapoorji Pallonji Group” (SP) from India. SP is known for its expertise in construction of hospitals with 45 such projects completed with a total bed capacity exceeding 19000 beds.
The shares of Minaean SP Construction Corp. (parent company) are publicly traded on the TSX Venture Exchange under the symbol “MSP” and on the Berlin and Frankfurt Stock Exchanges under the symbol “NJA”. For more information, please visit www.minaean.com.
On behalf of the Board of Directors
MINAEAN SP CONSTRUCTION CORP.
President & Director
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