In June 2015, MIGA issued guarantees totaling $51.7 million to Meridiam Eastern Europe S.a.r.l. of Luxembourg and Siemens Financial Services covering their investments in YZG Sağlık Yatırım A.Ş. in Turkey. The coverage is for a period of 20 years and 18 years respectively against the risks of transfer restriction, expropriation, and breach of contract.
The project involves the construction of a 475-bed hospital in the city of Yozgat under a 27-year design, build, finance, operate, and transfer project 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 the Turkish Ministry of Health to renovate the public hospital infrastructure in the country. MIGA has previously supported the Health PPP Program by issuing a guarantee to Meridiam for its investment in the Adana Integrated Health Campus.
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.