On May 11, 2017, MIGA issued guarantees of $117.5 million for an equity investment and shareholder loan into the Bursa Integrated Health Campus Project in Turkey. The guarantees, available for up to 15 years, provide coverage against the risks of transfer restriction, expropriation and breach of contract.
The project involves the development of a 1,355-bed hospital campus in the Bursa province in Northwestern Turkey under a 28.5-year construction, finance, maintenance and transfer agreement. The health campus is expected to have physical therapy and rehabilitation facilities, forensic and psychiatric wards, and technical services buildings.
The project is part of the Turkish Health Public-Private Partnership Program (PPP) developed by Turkey’s Ministry of Health to reform and modernize public hospital infrastructure in the country. MIGA has previously supported the Health PPP Program by issuing guarantees for the Adana, Yozgat and Elazig Health Integrated Campuses.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.
The project is expected to improve access to high quality health services for a population of 2.8 million people through the construction of new facilities, as well as the replacement of aging and inadequate infrastructure. Bursa is, additionally, located in a centralized area of Turkey, allowing the new health campus to provide improved health services to both Bursa residents and individuals from surrounding regions. Improved and/or new infrastructure will also contribute to improved energy efficiency in Turkey’s public hospitals. Lastly, the project is expected to have a demonstration effect for other sectors, where PPP models are under consideration as an alternative way 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 the PPP program aimed at providing affordable healthcare services beyond major urban areas.