Treating a country: Turkish Healthcare PPP Programme
As a country bridging Asia and Europe, and home to over 82 million people, the challenge of keeping the Turkish population healthy is both vast and growing.
In 2012, the Government of Turkey launched its Health PPP Programme, an ambitious initiative aimed at improving the country's health infrastructure which was old, out of date and no longer appropriate for meeting the country's healthcare needs. For example, in 2012, Turkey only spent 5.1% of its GDP on healthcare, compared to the OECD average spending which stood at 8.9% and only had 2.6 beds per 1,000 people compared with an OECD average of 3.6 beds per 1,000 people (2011).
The programme's main objective was to build up to 40 hospitals across the country, delivering up to 40,000 additional public hospital beds, over a 7 year period, with an estimated capital cost of €12 billion.
Naturally, such an ambitious undertaking required an equally ambitious funding strategy, leading to the Turkish government establishing, alongside European Bank for Reconstruction and Development and International Finance Corporation, a new PPP framework that was capable of attracting both local and international sponsors and lenders.
MUFG: A leading partner in Turkish Healthcare PPPs
Given MUFG's strong presence in Turkey and leading global track-record in Public-Private Partnership financings, a number of its key customers approached the bank to support them on various projects being delivered under the programme.
MUFG has been one of the leading international banks involved in the programme having provided €225 million of funds into four projects to date. The projects that have closed are as follows:
- Istanbul Ikitelli City Hospital PPP, November 2017. The Istanbul Ikitelli City Hospital is an integrated health campus with a total capacity of 2,682 beds consisting of three hospitals (main hospital, PTR hospital and psychiatric hospital), a technical building and a facilities management building.
- Bursa Integrated Health Campus PPP, October 2017. The Bursa Integrated Health Campus PPP project is an integrated health campus with a total capacity of 1,355 beds consisting of 3 hospital buildings located in Bursa, a city in the western part of Turkey.
- Elazig City Hospital PPP, December 2016. The project comprises the design, construction, financing, maintenance and operation of an integrated health campus with a total capacity of 1,038 beds, consisting of two hospitals and one clinic. The health campus will include an 888 bed main hospital, a 150 bed high security forensic psychiatric hospital and a 60 unit oral and dental clinic.
- Yozgat City Hospital PPP, June 2015. The Project comprises the design, construction, financing, maintenance and operation of an education and research hospital with 475 beds. The campus is comprised of the main hospital and a technical area in Yozgat, in Central Turkey. The Project is now operational, having being completed five months ahead of schedule.
Kamil Yanıkömeroğlu Chairman of Rönesans Healthcare Group:
“MUFG has been a loyal partner on these projects, helping us build much needed medical facilities. We hope to continue our relationship with MUFG in the future."
Recep Tayyip Erdoğan, President of Republic of Turkey:
“Improving our city hospitals has been a dream of mine since I was first elected as prime minister. Our Ikitelli City Hospital will bring a new vision to Istanbul and to our country in the area of health."