MegaProject 1046: EBRD and partners disburse funds for new hospital in Bursa
- European Bank for Reconstruction and Development (EBRD)
- Mitsubishi UFJ Financial Group
- Industrial and Commercial Bank of China (ICBC)
- Kommunalkredit Austria AG
- Siemens Bank
- Sumitomo Mitsui Banking Corporation (SMBC)
- DEG (German Investment and Development Corporation)
- European Investment Bank (EIB)
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The EBRD, is providing a €135 million (US$135) syndicated loan under its A/B structure, with €55 million on its own account, and a total of €80 million (US$93 million) syndicated to a group of international commercial lenders: The Bank of Tokyo-Mitsubishi UFJ, Ltd (€40 million), Kommunalkredit Austria AG (€30 million) and Industrial and Commercial Bank of China Limited, Dubai (DIFC) branch (€10 million).
Other commercial lenders include Siemens Bank and Sumitomo Mitsui Banking Corporation which jointly are providing €70 million (US$81 million). In parallel, Proparco, an investment arm of the French development agency, is providing €15 million; DEG, the German Investment and Development Corporation, is extending a €20 million loan; and the European Investment Bank (EIB) is contributing €150 million (US$174 million).
The health campus will consist of three hospital buildings with a total capacity of 1,355 beds. It will be designed, built, equipped and managed by a private developer, BRS Saglik Yatirim A.S., set up by a consortium of Turkish and international firms. These include one of Turkey’s largest construction and infrastructure companies, Rönesans Holding, and the leading global infrastructure firm, Meridiam, investing through an investment fund where the EBRD is a shareholder among other investors. Sila Consulting Medical Services, Sam Engineering and TTT Saglik Hizmetleri A.S. are also part of the consortium set up to develop the project.
The project is part of the government’s large-scale hospital-building programme under a public-private model. Under a 28-year concession, the buildings will be leased to Turkey’s Ministry of Health. The project developer will act as facilities manager, providing building maintenance and non-clinical services, while medical services will remain the remit of the Ministry of Health. The hospital is expected to become operational by the end of 2019.
To date, the EBRD has financed eight hospital projects in Turkey and has also been working closely with the Turkish Ministry of Health over the past four years to enable greater private-sector involvement in the hospital sector. The Bank has invested over €9.5 billion in various sectors of Turkey’s economy, with almost all investments in the private sector.
Faced with the need for large investments, the Turkish government is seeking to tap private-sector resources and know-how to construct and manage infrastructure facilities more quickly and efficiently.