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The European Bank for Reconstruction and Development (EBRD) is considering financing a hospital infrastructure PPP project involving the design, construction, equipping, financing, and maintenance of an integrated health campus in Izmit District of Kocaeli Province, Turkey.

The 28-year concession was awarded by the Turkish Ministry of Health. In January 2015 we informed that GE Healthcare, GAMA Holding A.S. and Turkerler Holding had signed a MoU for the project.

The total project cost is estimated at circa €480.6 million (US$539 million).

The potential financing comprises up to €90.7 million (US$102 million) EBRD A/B loan as well as financing from other commercial banks and IFIs and the sponsors' equity commitments under an 80:20 debt-to-equity structure. The EBRD is planning to provide A loan of €40 million (US$45 million) and B loan of up to €50.7 million (US$57 million).

Under this PPP structure, the concessionaire will be responsible for designing, building, financing, leasing and operating of the hospital facilities, while the provision of medical care and services will remain the responsibility of the Ministry of Health.

EBRD will assist in increasing private sector participation in the hospital infrastructure sector in Turkey. We recently announced that the EBRD is considering expanding its commitment to add €350 million (US$392.7 million) for the large scale hospital facilities management PPP programme covering up to 60 facilities across Turkey and worth €12 billion.