GE Invests in GAMA-TURKERLER JV to Develop Two Major Healthcare PPPs in Turkey; OPIC, EBRD and EDC to Provide Financing for Transformational Hospital Project
October 20, 2016
(OPIC)
The comprehensive long-term financial package
which brought together six international
financiers was signed today at Presidential
Complex in Ankara in the presence of Turkish
President Recep Tayyip Erdogan.
Overseas Private Investment Corporation
(OPIC), the U.S. Government’s development
finance institution, European Bank for
Reconstruction and Development (EBRD) and
Export Development Canada (EDC) to provide
~$668 million in financing for the development
of the Izmir Bayrakli integrated health campus
project (subject to FX);
GE joins GAMA Holding A.S. and Türkerler
Insaat A.S Joint Venture Company as minority
stakeholder in the IzmirBayrakli and Kocaeli
Healthcare Public Private Partnership (PPP)
projects, together valued at ~$1.3 billion
(subject to FX);
GE Healthcare awarded ~$128 million
long-term contract for comprehensive technology
and biomedical equipment maintenance services
for the two health campuses that will add 3,240
new hospital beds to Turkey’s public health
system.
ANKARA, Turkey & LONDON In line with
Turkey’s strategic healthcare transformation
program, GE Healthcare, GAMA Holding A.S. and
Türkerler Insaat A.S., today reached a
definitive agreement for the development of two
strategic Ministry of Health (MoH) PPPs; the
Izmir & Kocaeli Integrated Healthcare
Campus Projects.
The partners also announced a commitment by
OPIC, EBRD and EDC that together will serve as
lenders providing financing of $668 million for
the development of the Izmir Bayrakli health
campus project, subject to terms and conditions
and financial close. The partners are also
expected to confirm financing arrangements for
the Kocaeli health campus project (subject to
the required approvals) by the end of 2016.
The deal - that sees GE become a minority
investor in the PPPs and awarded a ~$128
million multi-vendor equipment and maintenance
contract – is part of the Turkish Ministry of
Health’s $10 billion plan to deliver
twenty-nine PPPs and 41,000 new hospital beds.
The definitive agreement was signed in Ankara
in the presence of His Excellency, Recep Tayyip
Erdogan, President of the Republic of Turkey
and Prof. Dr. Recep Akdag, Minister of Health
of the Republic of Turkey.
“Together with our private partners, Turkey is
delivering one of the world’s largest
healthcare modernizations in public healthcare,
and indeed the biggest in Turkish history. This
has been a significant undertaking, enabled by
policy and regulatory reforms to attract
foreign investment and an appetite to leverage
both local and foreign private sector
innovation, capabilities and financing to
propel the Turkish health system into the
future,” said Prof. Dr. Recep Akdag.
He added: “As of 2016, the Ministry has already
awarded twenty-one projects, with eight of
these projects achieving financial close with
construction underway. We anticipate the
Kocaeli and Izmir Bayrakli PPPs to begin
services by 2020, bringing a range of
world-leading medical technologies and services
for the 5.8 million people in these two
cities.”
As part of the Government’s patient-focused
‘Smart Hospitals’ initiative aimed at
introducing well designed modern facilities to
improve the quality of healthcare in the
region, both health campuses will offer a
general hospital, oncology hospital, women’s
and children’s hospital, cardiovascular
diseases centre and physical therapy and
rehabilitation units.
Hakan Özman, Deputy Chairman and CEO of GAMA
Holding A.S. said: “Today’s signing is a major
milestone in our long-term commitment to the
Kocaeli and Izmir Bayrakli projects. GE brings
a strong track-record of healthcare PPPs around
the world and their long-term participation as
an equity investor and technology provider will
be essential in realizing the Ministry of
Health’s vision on these projects. With
critical funding and project partners now in
place the Consortium will look to accelerate
the construction and delivery of these
projects.”
Kazim Türker, CEO of Türkerler Insaat A.S.
said: “In support of the Government’s Hedef
2023 healthcare development plan, the
Consortium is on a clear path to deliver its
commitment to the Ministry of Health on the
Kocaeli and Izmir Bayrakli projects. The
commitment of our foreign partners underscores
long-term confidence in Turkey’s PPP strategy
and in Turkey’s development goals.”
“OPIC is proud to provide financing that will
contribute to the construction and management
of new hospital campuses in Turkey,” stated
OPIC President and CEO, Elizabeth L.
Littlefield. “This Izmir transaction will
significantly improve the well-being of Turkish
residents by increasing their access to
high-quality healthcare services.”
Jean-Patrick Marquet, Director for EBRD
operations in Turkey, said: “Arranging this
comprehensive long-term financial package for a
new Izmir hospital is part of the EBRD’s
efforts to catalyse private sector involvement
in critical infrastructure in Turkey which
brings money and know how, and ultimately
benefit people's ýlives across the country.”
“EDC is very pleased to have participated in
arranging financing for this important PPP
hospital project in Turkey while providing
support to our global strategic client, GE,”
added Sven List, EDC Vice-President, Structured
and Project Finance.
As the key technology and solutions partner for
the 25-year projects, GE will deliver a
comprehensive 4-pillar technology and solutions
package that will boost healthcare sector
efficiencies, knowledge and technology sharing
and is expected to add approximately 15% to GE
Healthcare’s workforce in Turkey. The deal, one
of the largest to date in Turkish healthcare
and subject to MoH approval, will include:
1. More than 2,000 units of high technology
Imaging and Life Care Solutions equipment
enabling the early detection and proper
treatment of disease, including Magnetic
Resonance (MR), Computed Tomography (CT),
PET-CT (Positron Emission Tomography),
Angiography, Radiography and Nuclear Medicine,
as well as clinical systems including
anasthesia, ventilators, monitors, cardiology
monitoring equipment, ultrasound systems and
incubators for newborns;
2. Procurement consultancy of non-GE healthcare
medical equipment to ensure the level of
technology and completion of the entire project
portfolio;
3. Procurement of non-Healthcare GE products
such as lighting, co-generation and
electrification units, to ensure the complete
installation of the projects;
4. A 10-year biomedical services contract
supported by a dedicated and local technical
team that will provide long-term maintenance,
fix, calibrations and the integration of non-GE
equipment.
John Flannery, President & CEO for GE
Healthcare said: “At GE Healthcare we believe
that real healthcare transformation comes from
a willingness to embrace innovation. To that
end, the Izmir and Kocaeli Integrated
Healthcare Campus Projects are among the
largest and most complex PPP projects globally
that GE Healthcare has invested in to date and
demonstrates our commitment to developing new
business models and risk-sharing to drive
sustainable healthcare development.”
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