News / MegaProject 976: 1.6-B Turkish Health Campus PPP backed by Japanese institutions

MegaProject 976: 1.6-B Turkish Health Campus PPP backed by Japanese institutions

🕔 July 25, 2017
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Ronesans and Japan’s Sojitz have concluded a US$1.5 billion (JPY163 billion) financial deal with major Japanese institutions for the development of  the Istanbul-Ikitelli PPP Integrated Health Campus

Sojitz Corporation announced participation in the project and, together with Ronesans, will design, building, finance and manage (DBFM) the Ikitelli Integrated Health Campus. The equity splits as follows: Ronesans 70% and Sojitz 30%. The total project costs will reach JPY 203 billion (USD1.82 billion).

The financing package, with a tenor of 18 years,  has been arranged with Japan Bank for International Cooperation (JBIC), SMBC, BTMU, Nippon Life Insurance Company, Dai-Ichi Life Insurance Company, Iyo Bank and Standard Chartered. Financial closure is scheduled to be reached in October.

According to sources, Nippon Life will contribute JPY 17.5 billion (US$157.6 million). Dai-Ichi Life stated it will provide around JPY 10 billion (US$90 million)

Additionally, Sojitz has also plans to apply for and investment guarantee under the World Bank’s Multilateral Investment Guarantee Agency (MIGA) involving JPY 14 billion (US$126 million).

Willkie Farr & Gallagher (legal), SMBC (financial), and Mott MacDonald (technical) will act as advisors to the sponsors. White & Case will provide legal advisory to the lenders.

As we reported, Rönesans, with Renaissance Healthcare Investment, closed the deal to acquire the Istanbul-Ikitelli PPP Integrated Health Campus in late August 2015. The deal was completed after the winning consortium, composed by Allen Shariff Corporation and Forcimsa Empresa Constructora, could not close financing for the project. The consortium was awarded the project on 15 March 2012.

The public-private partnership (PPP) project involves the design, construction, financing andoperationof the health campus, as well as the supply of facilities and equipment. The health campus with an investment period of 3 years and operation period of 25 years is stipulated to serve 100.000 visitors per day with its 10.000 employees.

The new 2682-bed hospital will be constructed on a building plot of approximately 800.000 m². The integrated campus will be made up of :

  • General Hospital: 443 beds
  • Pediatrics: 451 beds
  • Oncology: 359 beds
  •  Gynecology: 451 beds
  • Neurology and Orthopedics: 347 beds
  • KVC: 303 beds
  • Psychiatry: 128 beds
  •  FTR: 200 beds

The campus will consist of two pieces of lands separated by a road. The northern part of the project area will include 6 hospital buildings, a diagnostic and treatment block, one central plant, an administration area and a conference hall. This part will also include a ceremonial square and a trigeneration unit building. The Southern part of the project area will consist of Psychiatric Hospital and Physical Theraphy and Rehabilitation Hospital. The project is planned to start operations by October 2020.

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