On November 17, 2016 and December 13, 2016, MIGA issued guarantees totaling €306.4 million (US$326 million) to Meridiam Eastern Europe S.a.r.l. and ELZ Finance S.A. for investments into the Elazig Integrated Health Campus Project in Elazig, Turkey. ELZ Finance S.A. is a Special Purpose Vehicle formed for the purpose of issuing debt to finance the Project. The guarantees are for a period of up to 20 years against the risks of transfer restriction, expropriation, and breach of contract.
The project involves the construction of a 1,038-bed hospital campus in the city of Elazig under a 28-year design, build, finance, operate, and transfer agreement. Facility management and clinical support services will also be provided under the contract. The project is part of the Turkish Health Public-Private Partnership Program (PPP) developed by Turkey’s Ministry of Health to renovate the public hospital infrastructure in the country. MIGA has previously supported the Health PPP Program by issuing guarantees to Meridiam for its investments in the Adana Integrated Health Campus and Yozgat Integrated Health Campus.
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 contribute to better health outcomes through the replacement of aging and obsolete infrastructure with more efficient buildings and modern technologies. The project is also 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.