On April 21, 2017, MIGA issued guarantees of €53.8 million (US$57.6 million) to NH Bank (as the Trustee) and KIAMCO (as the Agent) on behalf of Korean fund investors for their investments into Gaziantep Healthcare Hospital Property Yatirim A.S. of Turkey. The guarantees are for a period of up to 20 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The project involves the construction of a 1,875-bed hospital campus in the Gaziantep province in Southeastern Turkey under a 28-year construction, finance, maintenance, and transfer agreement. The project includes facility management and medical support services, such as a common diagnostic and treatment center. 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 for the Adana, Yozgat, and Elazig Integrated Health 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.
Gaziantep city is one of the most important industrial centers in southeastern Turkey. The project is expected to contribute to better health outcomes through the construction of new facilities and replacement of aging infrastructure with more efficient buildings and modern technologies for a population of 1.7 million people. The project is also 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.