On July 19, 2017, MIGA issued guarantees of ¥13.3 billion (US$119 million) to Sojitz Hospital PPP Investment B.V. of the Netherlands for an equity investment and shareholder loan into the Istanbul Ikitelli Integrated Health Campus Project in Turkey. The guarantees, available for up to 20 years, provide coverage against the risks of transfer restriction, expropriation and breach of contract.
The project involves the development of a 2,682-bed hospital campus in the Çekmece region of Istanbul, Turkey under a 28.5-year construction, finance, maintenance and transfer agreement. The health campus will have a general hospital, women’s hospital, children’s hospital, cardiovascular hospital, oncology hospital, psychiatric hospital, neurologic and orthopedic science hospital, and physical therapy and rehabilitation facilities.
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 to five projects, namely the Adana, Yozgat, Elazig, Gaziantep, and Bursa 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.
The project is expected to improve access to high quality health services for the Çekmece region of Istanbul (population 2.8 million) as well as the rest of Istanbul through the construction of a new integrated health campus, which will increase the city’s healthcare capacity and provide greater access to specialty hospitals. Given Istanbul’s historical and anticipated population growth, the construction of new healthcare facilities is critical. Improved and/or new infrastructure will also contribute to improved energy efficiency in Turkey’s public hospitals.
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.