Government reportedly terminates Apollo-IGMH deal

The deal between the Maldives government and Apollo Hospitals to manage Indira Gandhi Memorial Hospital (IGMH) has fallen through, local media reported Health Minister Dr Aminath Jameel as saying on Tuesday.

“We had to terminate the agreement because they [Apollo] were unable to meet the terms and conditions stated in the agreement. Every agreement specifies deadlines to settle certain matters,” Dr Jameel reportedly said.

“We have also informed them [Apollo] that the agreement has been terminated.”

Senior staff at the Health Ministry and Chair of the Privatisation committee Mahmoud Razee told Minivan News they had not been informed of the deal’s collapse and had only heard media reports. Minivan News contacted Dr Jameel but she was unable to confirm the reports as she was “travelling in the islands.”

The government reportedly terminated the agreement with Apollo after the Indian hospital giant was unable to invest the agreed amount to develop the hospital.

Apollo had estimated that it would cost US$25 million to bring the hospital up to global standards. The group also revealed intentions to make 80 percent of its employees Maldivian over a 15 year period, although it was unclear as to how this would be achieved given the lack of medical higher education facilities in the country.

Apollo planned to offer orthopedics, cardiology, gastro, neurology, acute care and trauma specialities in the first phase of the privatisation deal, as well as set up and operate a cardiology unit within the year, the Health Ministry stated when the deal was first announced in January.

CEO of IGMH Zubair Mohamed was not responding to calls at time of press, but expressed concern when the deal stalled in July, stating that uncertainly over the arrangement was making “little investments” more difficult.

“Apollo is an expert group and would bring a lot of benefits to the people,” he told Minivan News at the time. “They have the capacity to raise existing standards. But even if they do not come we will continue trying to improve services.”

However the agreement stalled after the private healthcare giant failed to submit a required operational management agreement by the July 2010 deadline. Both parties were required to cement the deal and sign the 12 year management agreement by the end of July.


8 thoughts on “Government reportedly terminates Apollo-IGMH deal”


    Ignoring Health and Education is a sure downfall of any government.

    Housing and Transportation are secondary. People will stand out in the rain and walk long distances to give better education for children and to treat a sick loved one.

    Both education and health are perhaps worse off than it was the day MDP took seat of government.

    An adhoc privatization of giyasudeen, bringing all sorts of poorly thought rushed changes to the education system without considering consequences, corruptly awarding MES to Ibra and signing this agreement with apollo without finalizing even if the project was feasible or not!

    Maldivians are just too patient and distracted by politics. All one needs to do is pin point the failures in these areas when next election comes and no one will be bothered about housing!

  2. so Male will be without good doctors?what is this MDP promises if they cannot manage situation with hospital more than one year in capital Male?it is just shame for all Maldives/

  3. Bloody joke. Appllo did not offer to invest in the first place. This government is sick.

  4. I think these things should be fast tracked and deals like this must be given to the ones with the best financial backing and the know how. The President needs to put his foot into big deals and follow up personally because the people cannot rely on these politicians to make anything work. Maldives is having very little investment by foreign million dollar companies because inside politics is always accusing one another of cheating or corruption. Face it, half from the government and the opposition are corrupt at least. So once a deal is made, we do not care who got them to invest into Maldives. As long as it does not ask us to pay millions from our pockets, we want the deal to go through!!

    Anti Corruption Agency itself has given maldives a bad name by playing into this. Start being a body for the country and look for what is best for the country idiots!

  5. I repeat, Apollo did not agree to invest 20 million dollars as President Nasheed announced. When the frying pan became too hot for MDP it is trying to jump out and blame it on Apollo.


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