Andhra's PPP medical colleges’ plan hits roadblock due to low bidder interest

The Health Department briefed Minister Satya Kumar Yadav on the developments.
The Health Department briefed Minister Satya Kumar Yadav on the developments.
The Health Department briefed Minister Satya Kumar Yadav on the developments. (File photo | Express)
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VIJAYAWADA: The State government’s ambitious plan to establish four new government medical colleges under the Public-Private Partnership (PPP) model has hit a major roadblock, following a poor response from private developers.

Official sources confirmed that the tender submission deadline, which ended on December 22, drew only a single bid for the medical college proposed at Adoni, while no bids were received for the remaining three institutions planned at Markapuram, Madanapalle, and Pulivendula.

The State Health Department had floated tenders for the construction, financing, operation and eventual transfer of these colleges under the Design-Build-Finance-Operate-Transfer (DBFOT) model, as part of the government’s broader effort to expand medical education infrastructure across the State.

In an attempt to attract private participation, the department conducted two pre-bid meetings, during which several prospective bidders sought clarifications on technical specifications, financial viability, and operational responsibilities. Responding to these concerns, the government revised certain clauses and extended the tender deadline twice. Despite these efforts, bidder participation remained limited.

The Health Department briefed Minister Satya Kumar Yadav on the developments. Senior officials indicated that a high-level review meeting will be convened soon.

The government is now considering multiple options, including relaxing tender conditions, offering revised financial incentives, reissuing fresh tenders, or reassessing the feasibility of implementing the PPP model in these regions.

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