Financial close for Turkey's first hospital PPP

Turkey has signed its first PPP deal for a major new hospital project, which is the first of many schemes currently working to achieve financial close.

The Adana Integrated Healthcare Campus scheme has reached financial close with the ADN PPP consortium, comprised of Meridiam Infrastructure, Sila, Ronesans Holding, SAM and TTT.

Under the €550m deal, the consortium will design, build, finance, operate and transfer the hospital, with a 36-month construction phase followed by a 25-year operating contract.

Commercial close on the deal was agreed back in August. Financing partners include the International Finance Corporation, the French development agency Proparco and the German development bank DEG, which together are mobilising €120m in parallel with the European Bank for Reconstruction and Development. Five commercial banks are also lending on the deal, although their details have not been released.

The deal is potentially a watershed moment for the Turkish PPP market, with a series of projects stacked up waiting to achieve financial close. The signing of the Adana scheme could now lead to many more following suit over the months ahead.

For more information on the scheme, click here.