Adana Health

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The Turkish Ministry of Health (“MoH”) developed a substantial healthcare Public Private Partnership (PPP) Program in order to renovate the healthcare infrastructure that is unable to meet the increasing healthcare demands, consolidate small state-owned hospitals into larger campuses, and increase service quality and efficiency of state-owned hospitals. The Adana Integrated Health Campus (“the project”) is a mid-size project within the program located in Adana, a second tier city in Southern Turkey with a population of 4.5 million including the metropolitan area. The project site (328,820 m2) belongs to the Treasury and has already been allocated to MoH. The campus will have a 1,550-bed capacity, composed of 6 hospitals: a 584-bed general hospital, a 185-bed cardiology hospital, a 182-bed oncology hospital, a 349-bed women’s and children’s hospital, a 150-bed physical medicine and rehabilitation hospital, and a 100-bed forensic psychiatric hospital. The health campus will be developed on a greenfield located on the outskirts of Adana, and will add new bed capacity and replace some of the existing inefficient and dated state owned hospitals scattered around the city.In addition to hospital buildings, a commercial area consisting of health support facilities such as pharmacies, doctors’ offices, ophthalmic hospital and day chemotherapy; a technical unit building to house a tri-generation system in the ground floor with an estimated capacity of 8.6 MW; a helipad located on top of the tower will be constructed; a 154 kV energy transmission line which is currently nonoperational will be relocated and a 400 m road that passes through the project site will be removed within the scope of the project.The project sponsors are a consortium comprised of 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., Sila Danışmanlık Saglik Bilisim İnşaat Ticaret A.S., which combines construction and development experience, with medical knowledge, concessions and health PPP expertise. The borrower is a new project company to be established and called ADN PPP Saglik Yatirim A.S. The proposed IFC investment entails an IFC A Loan of EUR 35 million, a MCPP Loan (Managed co-lending portfolio program) of EUR 26.25 million, an Interest Rate Swap and mobilization from B/Parallel lenders to participate in the EUR 467 million greenfield project financing of the Adana IHC.The construction period is 3 years, to be followed by a 25 year operating period. During the operating period, the MoH will provide the core medical services in the health campuses while the project company will be responsible for hospital management, maintenance, security and support services including imaging, labs, linens, and catering, etc.