According to sources, the Republic of Turkey is currently carryout a review of the the existing public private partnership (PPP) law.

At the moment, according to the law, concessionaires and financiers receive support from the Ministry of Health to carry out health PPP projects as the Ministry undertakes 100% termination compensation to concessionaires and financiers under a direct agreement.

However, the government is considering now a reduction in the amount of termination compensation if a project company default. This change would involve a modification of the risk allocation in the projects and could make them less attractive for lenders concretely.

Turkey is also considering other changes such as: more tax exemptions for project sub-contractors and additional flexibility in the approval process for contract modifications.

The country has one of the largest pipeline of heath PPP projects in the world. In 2003 the Ministry of Health started an €20 billion Health Transformation Program to develop approximately 40 integrated healthcare campus projects through the PPP model. Under the program about 20 tender processes have been launched and 10 PPP projects have reached financial closure.