The FINANCIAL — IFC, a member of the World Bank Group, is arranging €154 million in financing to help build the world’s largest healthcare facility – a €1.1 billion integrated campus in the Turkish capital, Ankara.
The new campus is part of a Ministry of Health program to improve the country’s public hospital infrastructure through a public-private partnership model. A consortium comprised of Astaldi Spa and Turkerler Construction won the competitive bidding process to build Etlik Integrated Health Campus in the Etlik district of Ankara, according to IFC.
The campus’ eight hospitals will include a general hospital (694 beds), a women’s hospital (500 beds), a children’s hospital (468 beds), a cardiovascular surgery hospital (362 beds), an oncology hospital (484 beds), an orthopedic hospital (478 beds), a psychiatric hospital (280 beds) and a rehabilitation hospital (300 beds). The planned construction period is 42 months, to be followed by a 24-year concession.
IFC is lending €75 million to Ankara Etlik Hastane Saglik Hizmetleri Isletme Yatirim A.S, a company established by the consortium to build and maintain the health campus, and arranging another €79 million in financing from international commercial banks, including CA-CIB, Unicredit and Banca IMI, under its B Loan Program.
Other lenders include European Bank for Restructuring and Development, DEG (German Investment and Development Corporation), Black Sea Trade and Development Bank, Deutsche Bank, Turkiye Is Bankasi A.S., Akbank, and TSKB. The Italian export credit agency, SACE, provided loan guarantees for a $125 million tranche. The transaction marks the first Turkish project financing provided by a mix of development finance institutions and foreign and Turkish commercial banks with all tranches at an 18-year tenor.
“This landmark project is an important milestone in the transformation of Turkey’s healthcare sector, being the largest health campus in the world,” said Serhat Inanc CEO of Ankara Etlik Hastane Saglik Hizmetleri Isletme Yatirim A.S and Board Member of Turkerler. “The funding structure indicates increasing confidence among various types of lenders in the PPP model of the Ministry of Health and the consortium partners.”
“Expanding access to high quality healthcare services for all population groups is a central element of our strategy in Turkey,” said Aisha Williams, IFC Country Manager for Turkey. “This is an excellent example of how the private and public sector can work together to make a difference. We hope this will set a positive example for PPPs in other sectors in Turkey.”
IFC’s support for this project is aligned with the World Bank Group’s Country Partnership Strategy for Turkey. Under the strategic objective of improved equity and public services, the World Bank Group plans to support the government’s Health Transformation Program as outlined in the Ministry of Health’s Strategic Plan. This includes a PPP program aimed at providing affordable healthcare services beyond major urban areas.
IFC has been supporting private sector development in Turkey for the past 50 years. With a $4.3 billion outstanding portfolio, Turkey is the second largest country in IFC’s global portfolio. In line with the Turkey Country Partnership Strategy, IFC invested a record $2.8 billion in private sector projects in Turkey in fiscal years 2012-2015.