MIGA guarantees Meridiam's investment in health PPP project in Turkey

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MIGA guarantees Meridiam's investment in health PPP project in Turkey

World Bank's Multilateral Investment Guarantee Agency (MIGA) has guaranteed Meridiam's investment in the Adana Health Campus PPP project in the southern Turkish city Adana.

Meridiam Eastern Europe SARL has received MIGA guarantees of €142.5 million (US$181 million) for a period of up to 20 years against the risks of transfer restriction, expropriation, and breach of contract. The total project investment is estimated at €467 million.

The project sponsor is a consortium composed by Ronesans Holding A.S., Ronesans Saglik Yatirim A.S., Meridiam Eastern Europe S.a.r.l, TTT Saglik Hizmetleri Egitim Insaat Sanayi Ticaret A.S., Sam Yapi Sanayi ve Ticaret Ltd. Sti., and Sila Dan??manl?k Saglik Bilisim ?n?aat Ticaret A.S.

The project involves the development of a 1,300 bed facility and units dedicated to general health, cardiovascular diseases, oncology, and women's health; a children's hospital; a physical treatment and rehabilitation hospital with 150 beds; and a high-security criminal psychiatric hospital with 100 beds. There will also be a common diagnostic and treatment center, health support facilities, a heliport, and a plant to generate electricity.

The project involves the development, design, financing, construction, maintenance of the new facility for a period of 28 years.

In mid July we reported that the International Finance Corporation (IFC) was considering providing a €61.25 million loan for the project.

The project will fill a substantial need in Adana and the surrounding areas for an updated and consolidated public healthcare facility. Existing service units are sub-standard in terms of physical structure and equipment. Hospitals in the area also have some of the highest levels of over-crowding in Europe, with only 290 beds per 100,000 people.

The healthcare system in Turkey is being developed under the Health Transformation Program which was initiated in 2003. Within the scope of the Health Transformation Program, the Ministry of Health  has planned to develop 30 Health Campuses in 22 provinces  to serve 29 health regions among Turkey.

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