Project detail - ELZ SAGLIK YATIRIM A.S.

ELZ SAGLIK YATIRIM A.S.

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Who is our client

The sponsors of the project are Ronesans Saglik Yatirimlari and Ronesans Holding (44 percent), Meridiam Infrastructure Fund (36 percent) and Sila Group, TTT, Sam Yapi (20 percent). Ronesans is one of the top international construction contractors with track record in emerging markets, while Meridiam is an experienced financial sponsor with track record of bidding and implementing major infrastructure projects. Sila, TTT and Sam Yapi provide strong expertise and know-how of the public and private Turkish healthcare market.

Funding objective

ELZ is an SPV that is established by the consortium to build, finance and maintain an integrated health campus with 1,038 beds in Elazig, Turkey for an operation period of 25 years following a construction period of 3 years.

Why we fund this project

The project addresses lower quality and inefficient healthcare services in Elazig, Turkey. At present, nation-wide provision of hospital beds is low (currently 2.6 beds/ 1000 people vs 4.8 beds/ 1000 people in the OECD), and hospital space per bed is limited (currently 55m2 vs 175 m2 in line with international standards) in Turkey. Furthermore, the proposed transaction fits with FMO's strategy since FMO finances a "green" hospital in a UMIC country: as confirmed by the second party opinion of Vigeo. Additionally, FMO stimulates private sector in healthcare which is traditionally state-dominated: as private sector will provide 19 different services during the operation period of 25 years under the concession. e.g. supply of medical equipment and clinical support services such as laboratory/ imaging/ sterilization services, furnishing/ maintenance/ repair of the facilities, waste management, catering, linen and laundry services, security services. Hence, the project entails more than only real-estate development, with substantial job creation impacts (during construction 3,200 direct and 300 indirect jobs supported under EPC contracts,during operation period more than 3,800 direct and indirect jobs supported under O&M contracts). FMO derives additionality through stamp of approval and long-term financing for one of the major PPP projects in Turkey: FMO derives its additionality by boosting investor confidence weakened after the recent turmoil in the country. FMO contributes to one of the first healthcare PPP projects of the country where the legal infrastructure took nearly 8 years to develop.

Website client
http://www.pppelazighastanesi.com/en
Region
Europe & Central Asia
Country
Turkey
Sector
Infrastructure, Manufacturing and Services
Signing date
12/6/2016
Total FMO financing
EUR 20.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B