Astaldi, Turkerler to Sign 900 Million Euro Ankara Hospital Loan

Astaldi SpA and Turkish partner Turkerler Group will sign an agreement in late May to borrow 900 million euros ($988 million) from a group of banks to finance their joint venture’s hospital project in the capital, Ankara.

The venture, Ankara Etlik Hastane Saglik Hizmetleri Isletme Yatirim AS, will get the 18-year loan from international and local lenders, Chief Executive Officer Serhat Inanc said in an interview in Istanbul Tuesday. The hospital requires total investment of 1.2 billion euros, he said. The European Bank for Reconstruction and Development, International Finance Corp., Italian export credit agency SACE SpA, and Turkiye Is Bankasi AS are among the lenders, he said.

“We have only some legal papers left to be completed and then we are ready to sign the loan,” Inanc said.

The Turkish government is building 17 hospitals for as much as $10 billion under the public-private-partnership model, known as PPP, to double the number of beds in the country to 95,000 by 2018. Demand for hospital beds has increased since the government reformed health services in the mid-2000s to include all citizens under general healthcare coverage.

Under the PPP model, private builders undertake the construction and supply of non-medical equipment, services and staff. The health ministry pays them an annual fee for an operational life of 25 years, providing medical staff and assuming loan guarantees.

Ankara-based Turkerler is teaming up with Gama Holding AS to build a hospital in the northwestern town of Izmit under the same model, Inanc said.

Turkey will open bids this year for 17 more hospitals under the PPP model, bringing to 34 the number to be built under this system, Health Minister Mehmet Muezzinoglu told reporters in Istanbul Tuesday.

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