On December 18, 2014, MIGA issued a guarantee of $157.5 million covering an investment by Meridiam Eastern Europe SarL of France in ADN PPP Sağlık Yatırım A.Ş. in Turkey. The coverage is for a period of up to 20 years against the risks of transfer restriction, expropriation, and breach of contract.
The project consists of the design, construction, financing, and maintenance of a new integrated health campus in the southern Turkish city Adana structured as a public-private partnership (PPP). The project includes a main hospital with 1,300 beds and units dedicated to general health, cardiovascular diseases, oncology, and women’s health; a children’s hospital; a physical treatment and rehabilitation hospital with 150 beds; and a high-security criminal psychiatric hospital with 100 beds. There will also be a common diagnostic and treatment center, health support facilities, a heliport, and a plant to generate electricity.
The project will fill a substantial need in Adana and the surrounding areas for an updated and consolidated public healthcare facility. The current facilities are inadequate and difficult to repair or renovate. Existing service units such as operating rooms, intensive care units, and emergency rooms are sub-standard in terms of physical structure and equipment. Hospitals in the area also have some of the highest levels of over-crowding in Europe, with only 290 beds per 100,000 people.
The project is expected to have a demonstration effect for other sectors, where PPP models are under consideration as an alternative to improve social infrastructure.
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. The World Bank Group’s International Finance Corporation is also supporting the project by providing financing of €35 million to ADN PPP Sağlık Yatırım A.Ş.