Istanbul, Turkey, December 19, 2014 -
The
International Finance Corporation
(IFC)
and
Multilateral Investment Guarantee Agency (MIGA), members of the World Bank Group, announced today their support for the development of a €433 million integrated health campus in Adana, southern Turkey. The Adana campus is part of a nation-wide public-private partnership (PPP) program being implemented by the Turkish Ministry of Health to provide improved public healthcare services.
IFC will lend €35 million in loans to ADN PPP Saglik Yatirim,a special purpose company established by a consortium to build, finance and maintain the health campus, and arrange another €136 million from other financing sources, development finance institutions and international commercial banks. The German development finance institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH and Proparco, the subsidiary of the French Development Agency dedicated to financing the private sector, each provided long-term loans to the amount of €30 million. Other lenders include EBRD, KDB, BBVA,
Siemens Financial Services, SMBC, and HSBC.
MIGA is issuing guarantees worth €142.1 million covering an equity investment into the project by Meridiam Eastern Europe SARL of France, one of the consortium members that established ADN PPP Saglik Yatirim. MIGA guarantees provide coverage against the risks of transfer restriction, expropriation, and breach of contract for a period of up to 20 years.
Rönesans Holding President Dr. Erman Ilicak said:
“This project is an important milestone in the transformation of Turkey's healthcare sector as it represents the first step for the following investments. The funding structure indicates confidence in the PPP model of the Ministry of Health and the investing partners.”
The 1,550-bed Adana health campus will include six hospitals with different specializations, such as oncology and women & children’s health services. In addition to increased bed capacity, it will improve the coverage and quality of the regional healthcare network, including improved bed allocation across medical specialties.
Expanding access to high quality healthcare services for all population groups is a central element of our strategy,” said Guy Ellena, IFC Director for Global Corporate Coverage. “This is an excellent example of how the private and public sector can work together to make a difference. We hope that this will set a positive example for PPPs in other sectors in Turkey and also serve as a model across the wider region.”
Keiko Honda, MIGA’s Executive Vice President and CEO, said: “We’re pleased to support this important program to help bring affordable, high-quality healthcare services to underserved regions in Turkey. Despite a major transformation in the Turkish health care system within the past decade, the coverage and quality of Turkey’s public hospital infrastructure is unable to meet the country’s growing and evolving healthcare needs.”
IFC and MIGA’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.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world
’
s most pressing development challenges. For more information, visit
www.ifc.org
.
About MIGA
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment into emerging economies to support economic growth, reduce poverty, and improve people
’
s lives. MIGA fulfills this mandate by offering political risk insurance and credit enhancement to investors and lenders. For more information, visit
www.miga.org
.
