Kathmandu. Kathmandu International Hospital, which is under construction at Tinkune with the investment of Bhatbhateni Group, is to come into operation from mid-July.

In the first phase, a hospital with a total capacity of 300 will come into operation with 100 beds.

The hospital, which was under construction since before 2021, has been shifting its operating date time and again. The hospital has achieved 70 per cent financial progress and 80 per cent physical progress. Since the Bhatbhateni Group has been completing the physical infrastructure of its supermarkets in a short time, it is expected that the hospital will be operational within the predetermined time frame.

KATHMANDU: Care Ratings Nepal has re-upgraded the credit rating of Kathmandu International Hospital’s bank loan facility. Despite the reaffirmation of the rating, the physical and financial progress of the under-construction project is lagging behind the targeted timeline. In addition, the increase in construction costs is making the project’s risk even higher, CARE Ratings said in a press release.

The construction cost in 2023 was estimated at Rs 7.46 billion. Now it has reached Rs 8.43 billion. Out of this, Rs 5.65 billion is being raised through bank loans and the rest through self-capital.

According to CARE Ratings, physical and financial achievement so far has been relatively sluggish compared to the progress previously projected when the rating was first set in December 2023.

According to the press release, the structural construction, underground floor and main building works are yet to be completed but the interior decoration, installation of equipment and other technical works are still to be carried out. In the first phase, a 100-bed multi-specialty service will be operated at the hospital. As per the target set for the last time, the hospital will partially start service from mid-July.

As the deadline for the hospital to come into operation has been pushed forward, the deadline for the project to pay the principal and interest installments has also been extended. This risks putting pressure on cash flow until operations resume.

Entrepreneur Min Bahadur Gurung, chairman of Bhatbhateni Group, has acquired 45 percent stake in the company. However, Care Nepal has not included any information about this in the press release regarding the rating. The news has already been published in the media that the Bhatbhateni Group has entered the hospital with a capital investment of Rs 71.5 crore.

The hospital is headed by Chitwan Medical College’s Proprietor Dr. A group of investors led by Harish Chandra Neupane had started the construction. They have brought Bhatbhateni Group as the new partner due to additional land acquisition, structural changes in compliance with international standards and construction delays.

The 12-storey hospital building will have two floors underground, eight floors and a one-story helipad on the top. It will have a total built-up area of 27,726 square meters. Although the helipad has been constructed, it will be challenging to get permission from the Civil Aviation Authority for landing or taking off a helicopter on the roof of the hospital as there is Tribhuvan International Airport nearby.