IJM Bhd (3336) and Malaysia Allied Health Science Academy College (Mahsa) is tipped to develop a medical city in Kerala once the state government gives its approval.

The Kerala State Industrial Development Corporation and Malaysia’s Construction Industry Development Board (CIDB), both of which are parties of the consortium, are currently in talks to seal the deal for the RM433 million (approximately US$120 million) project in Kinalur, Kozhikode City.

Works Minister Datuk Mohd Zin Mohamed said: “Through CIDB, we signed the memorandum of agreement with the Kerala state government in September and hope to sign the final agreement soon.”

Mohd Zin added that the estimated investment for the first phase is likely to exceed US$120 million, and it could be completed in three years’ time. He also said Malaysian companies have expressed interest to develop the project, and it is a good opportunity for Malaysia to export its expertise and to develop its technical knowledge.

IJM is expected to be the master builder while Mahsa will be involved in providing medical infrastructure of the proposed integrated medical city. The project will be developed in four phases on an 110ha site in Kinalur, about 42km from Kozhikode, also known as Calicut, the third largest city in the southern state of Kerala.

The project is touted to comprise a medical university, a hospital, a nursing school, a dental college and health centres comprising both traditional and modern medicine, as well as pharmaceutical product manufacturers.