Libya: AMHC’s USD 100m hospital contract seen up for grabs, sources

By bne IntelliNews August 2, 2013

WASHINGTON/TRIPOLI (CI MENA) -- American Hospital Management Company’s contract to manage two Libyan hospitals for over USD 100m is now seen up for grabs, sources close to the situation said.

Libyan Health Ministry sources told Capitol Intelligence/IntelliNews that while they would like to honor the contract signed in 2011, they have held no formal talks with the American company since the signing and are now exploring opening talks with other partners. 

In June, the UK-based International Hospital Group signed a contract with the Libyan Health Minister Nureddin Daghman, MD to design, build and operate nine new hospitals across Libya for a deal value of LD 9bn (GBP 1bn), according to a report by the Libya Herald.

AHMC head of business development Ralph Foster said the privately-held Washington-DC-based company with annual revenues of about USD 400m would like to pursue and execute the contract but has yet to re-open talks with the Libyan Health Minister.

AHMC chief executive Randall Arlett told Capitol Intelligence/Intellinews that the company has not abandoned its contracts in Libya but declined to say when it expects to restart talks with the Libyan government.

AHMC had the contract to operate two 60-bed hospitals in Tripoli, the VIP Hospital and Swani Road Hospital. The VIP Hospital is a renovated hotel while the Swani Road Hospital has yet to be built.

HKS’ EVP Healthcare Steve Jacobson said the group said designed the yet-to-built Swani Road Hospital and it is seeking to renew talks with contractor of the projects, Libya’s Economic and Social Development Fund. HKS’ Swani Road design contract is worth about USD 6.5m.

A financial source with direct knowledge said Tunisian-based Amen Sante in partnership with Saudi-based Oger Group has already approached Libyan health ministry officials to takeover the AHMC contract and other hospital turnkey contracts in Libya. 

A high-level source close to the Libyan Health Minister said that Chinese healthcare companies have taken aggressive moves to enter to the market and are forming new relationships within the ministry.

Libyan Oil Minister Abdelbari Al-Arusi told a select audience of US investors during the Houston Offshore Technology Conference in Houston that Libya cannot wait for US companies to show-up in Libya.

“We are talking to Turkish, Korean and Chinese companies,” Al-Arusi said during the meeting attended by Capitol Intelligence. “We of course want to sign contracts with American companies but we cannot sit around for you to show-up.”

By PK Semler in Washington, DC, Tripoli and Houston. For more information please call +1202-549-3399 or email: or


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