News / Health PPP projects in Turkey. Some decisions coming up. Hospitals in Turkey II

Health PPP projects in Turkey. Some decisions coming up. Hospitals in Turkey II

🕔 September 1, 2010

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On Augusts 11th we wrote about the prequalification process for the Ankara Bilkent Integrated Health Campus PPP project. This health project with private participation is the third one launched in Turkey and thr RFQ stage closed that same day.Today, I would like to describe a bit in detail the two other projects and the whole general process that the Turkish government is carrying out.The Ministry of Health of the Republic of Turkey (MoH) has developed and is implementing a plan to expand and improve its medical sector by creating a new and efficient public health infrastructure. To achieve this vision, the Turkish government calculated that a significant number of projects are required totalling an investment of more than USD 5 billion which the MoH plans to implement within a 5 year period.The MoH has decided that a carefully designed Public Private Partnership program would be the best way to effectively carry out the project of creating  a modern and efficient health infrastructure in Turkey. The Turkish healthcare sector is under a substantial reform with the creation of local health authorities.The Kayseri Health Campus project was the first PPP program adopted for the healthcare sector in Turkey. The Ankara Etlik Health Complex was the secondproject launched.

UPDATE 1. October 7th.Kayseri Health CampusThe eight teams that pre-qualified for Kayseri were:
- Alsim Alarko Sanayi Tesisleri ve Ticaret A.S.- Yildizlar Insaat ve Ticaret A.S. &; Lend Lease Europe Holdings Limited Is Ortakligi- IC Ictas Insaat San. ve Tic. A.S.- YDA Insaat Sanayi Ticaret A.S. & Inso Sistemi Per Le Infrastrutture Sociali S.P.A Is Ortakligi- Guris Insaat ve Muhendislik A.S.- Astaldi S.P.A & Turkerler Ins. Turz. Mad.Enr. Urt. Tic. San. A.S. Is Ortakligi- Vamed Engineering Gmbh&Co Kg ve Turk Philips Ticaret A.S. Is Ortakligi- Obrascon Huarte Lain (OHL)Four final offers are understood to have been submitted. The selection of the preferred bidder is inminent.
SLF was appointed as Legal Strategic Advisor for the Kayseri Health Campus project (March 2009), a joint venture between:
• ACT ECON a competition and regulation consultancy firm (based in Istanbul and Ankara); and
• Koyuncuoglu Law Firm (Turkish law firm based in Istanbul and Ankara).
To increase the bankability of the project the Government provided a guarantee on payments. Bankability issues also arise in connection with the Turkish financial market, in terms of local inflation (8-10%) and cost of funding (12-13%). These facts make difficult to fund a project with a duration of 25 years (average duration of concessions in Turkey ranges between 12 and 18 years).
June 2010 was the expected deadline for the submission of the bids for Kayseri Health Campus project. The expected announcement of the winning consortium is Septemeber 2010.
Update January 4th
According to Group Law's newsletter, there are rumors in the market that - IC ?çta? ?n?aat San. and Tic. A.Åž. has been the winner of the first Project. (See Group Law's newsletter below)
Ankara Etlik Healt ComplexIn February 2010 the RFQ for the second project, the Ankara Etlik Healt Complex, was launched. We don't know anything else about other deadlines.  
Update January 4thAccording to the announcement made by the Turkish Ministry of Health, bid deadline for the tender for "the Work of Construction Works and the Provision of Products and Services for Ankara Etlik Integrated Health Campus" has been moved to 28.01.2011 Friday, 14 pm. (See Group Law's newsletter below)SUMMARY:
So we expect three big decisions on these projects:
Following there is a document showing the main characteristics of the first contract, the Kayseri Health Campus project:
PPP Health Campus Projects
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