- Overseas Private Investment
Corporation (OPIC), the U.S. Government’s development finance
institution, European Bank for Reconstruction and
Development (EBRD) and Export Development Canada (EDC) to
provide ~$668 million in financing for the development of the Izmir
Bayrakli integrated health campus project (subject to FX);
- GE joins GAMA Holding A.S. and
Türkerler İnşaat A.Ş Joint Venture Company as minority stakeholder
in the Izmir Bayrakli and Kocaeli Healthcare Public Private
Partnership (PPP) projects, together valued at ~$1.3 billion
(subject to FX);
- GE Healthcare awarded ~$128 million
long-term contract for comprehensive technology and biomedical
equipment maintenance services for the two health campuses that
will add 3,240 new hospital beds to Turkey’s public health
system.
###
In line with Turkey’s strategic healthcare transformation
program, GE Healthcare, GAMA Holding A.Ş. and Türkerler İnşaat
A.Ş., today reached a definitive agreement for the development of
two strategic Ministry of Health (MoH) PPPs; the İzmir &
Kocaeli Integrated Healthcare Campus Projects.
The partners also announced a commitment by OPIC, EBRD and EDC
that together will serve as lenders providing financing of $668
million for the development of the Izmir Bayrakli health campus
project, subject to terms and conditions and financial close. The
partners are also expected to confirm financing arrangements for
the Kocaeli health campus project (subject to the required
approvals) by the end of 2016.
The deal - that sees GE become a minority investor in the PPPs
and awarded a ~$128 million multi-vendor equipment and maintenance
contract – is part of the Turkish Ministry of Health’s $10 billion
plan to deliver twenty-nine PPPs and 41,000 new hospital beds.
The definitive agreement was signed in Ankara in the presence of
His Excellency, Recep Tayyip Erdoğan, President of the Republic of
Turkey and Prof. Dr. Recep Akdağ, Minister of Health of the
Republic of Turkey.
“Together with our private partners, Turkey is delivering one of
the world’s largest healthcare modernizations in public healthcare,
and indeed the biggest in Turkish history. This has been a
significant undertaking, enabled by policy and regulatory reforms
to attract foreign investment and an appetite to leverage both
local and foreign private sector innovation, capabilities and
financing to propel the Turkish health system into the future,”
said Prof. Dr. Recep Akdağ.
He added: “As of 2016, the Ministry has already awarded
twenty-one projects, with eight of these projects achieving
financial close with construction underway. We anticipate the
Kocaeli and Izmir Bayrakli PPPs to begin services by 2020, bringing
a range of world-leading medical technologies and services for the
5.8 million people in these two cities.”
As part of the Government’s patient-focused ‘Smart Hospitals’
initiative aimed at introducing well designed modern facilities to
improve the quality of healthcare in the region, both health
campuses will offer a general hospital, oncology hospital, women’s
and children’s hospital, cardiovascular diseases centre and
physical therapy and rehabilitation units.
Hakan Özman, Deputy Chairman and CEO of GAMA Holding A.Ş. said:
“Today’s signing is a major milestone in our long-term commitment
to the Kocaeli and Izmir Bayrakli projects. GE brings a strong
track-record of healthcare PPPs around the world and their
long-term participation as an equity investor and technology
provider will be essential in realizing the Ministry of Health’s
vision on these projects. With critical funding and project
partners now in place the Consortium will look to accelerate the
construction and delivery of these projects.”
Kazım Türker, CEO of Türkerler İnşaat A.Ş. said: “In support of
the Government’s Hedef 2023 healthcare development plan, the
Consortium is on a clear path to deliver its commitment to the
Ministry of Health on the Kocaeli and Izmir Bayrakli projects. The
commitment of our foreign partners underscores long-term confidence
in Turkey’s PPP strategy and in Turkey’s development goals.”
“OPIC is proud to provide financing that will contribute to the
construction and management of new hospital campuses in Turkey,”
stated OPIC President and CEO, Elizabeth L. Littlefield. “This
Izmir transaction will significantly improve the well-being of
Turkish residents by increasing their access to high-quality
healthcare services.”
Jean-Patrick Marquet, Director for EBRD operations in Turkey,
said: “Arranging this comprehensive long-term financial package for
a new Izmir hospital is part of the EBRD’s efforts to catalyse
private sector involvement in critical infrastructure in Turkey
which brings money and know how, and ultimately benefit people's
ýlives across the country.”
“EDC is very pleased to have participated in arranging financing
for this important PPP hospital project in Turkey while providing
support to our global strategic client, GE,” added Sven List, EDC
Vice-President, Structured and Project Finance.
As the key technology and solutions partner for the 25-year
projects, GE will deliver a comprehensive 4-pillar technology and
solutions package that will boost healthcare sector efficiencies,
knowledge and technology sharing and is expected to add
approximately 15% to GE Healthcare’s workforce in Turkey. The deal,
one of the largest to date in Turkish healthcare and subject to MoH
approval, will include:
1. More than 2,000 units of high technology Imaging and Life
Care Solutions equipment enabling the early detection and proper
treatment of disease, including Magnetic Resonance (MR), Computed
Tomography (CT), PET-CT (Positron Emission Tomography),
Angiography, Radiography and Nuclear Medicine, as well as clinical
systems including anasthesia, ventilators, monitors, cardiology
monitoring equipment, ultrasound systems and incubators for
newborns;
2. Procurement consultancy of non-GE healthcare medical
equipment to ensure the level of technology and completion of the
entire project portfolio;
3. Procurement of non-Healthcare GE products such as lighting,
co-generation and electrification units, to ensure the complete
installation of the projects;
4. A 10-year biomedical services contract supported by a
dedicated and local technical team that will provide long-term
maintenance, fix, calibrations and the integration of non-GE
equipment.
John Flannery, President & CEO for GE Healthcare said: “At
GE Healthcare we believe that real healthcare transformation comes
from a willingness to embrace innovation. To that end, the İzmir
and Kocaeli Integrated Healthcare Campus Projects are among the
largest and most complex PPP projects globally that GE Healthcare
has invested in to date and demonstrates our commitment to
developing new business models and risk-sharing to drive
sustainable healthcare development.”
- Ends -
About GAMA Holding A.S.:
GAMA, founded in 1959, builds power plants, refineries, cement,
petro-chemical and gas plants, factories, high-rise buildings,
water treatment plants and transmission lines, bridges, and other
infrastructural projects along with funding various energy
investments. GAMA is a leading international contractor who have
successfully completed 400 projects in 25 countries extending from
Ireland in the west to Russia’s Sakhalin Island in the east. GAMA
Holding Companies currently undertake projects valued 4.5 billion
USD in 10 countries. Besides serving as an EPC company and
contractor, GAMA also invests in energy and health projects. For
more information, please visit www.GAMA.com.tr.
About GE:
GE (NYSE: GE) is the world’s Digital Industrial
Company, transforming industry with software-defined
machines and solutions that are connected, responsive and
predictive. GE is organized around a global exchange of
knowledge, the "GE Store," through which each business shares and
accesses the same technology, markets, structure and intellect.
Each invention further fuels innovation and application across our
industrial sectors. With people, services, technology and scale, GE
delivers better outcomes for customers by speaking the language of
industry. www.ge.com
About GE Healthcare:
GE Healthcare provides transformational medical technologies and
services to meet the demand for increased access, enhanced quality
and more affordable healthcare around the world. GE works on things
that matter - great people and technologies taking on tough
challenges. From medical imaging, software & IT, patient
monitoring and diagnostics to drug discovery, biopharmaceutical
manufacturing technologies and performance improvement solutions,
GE Healthcare helps medical professionals deliver great healthcare
to their patients.
About OPIC:
OPIC is the U.S. Government’s development finance institution.
It mobilizes private capital to help address critical development
challenges and in doing so, advances U.S. foreign policy and
national security priorities. Because OPIC works with the U.S.
private sector, it helps U.S. businesses gain footholds in emerging
markets, catalyzing revenues, jobs and growth opportunities both at
home and abroad. OPIC achieves its mission by providing investors
with financing, political risk insurance, and support for private
equity investment funds, when commercial funding cannot be obtained
elsewhere. Established as an agency of the U.S. Government in 1971,
OPIC operates on a self-sustaining basis at no net cost to American
taxpayers. All OPIC projects adhere to high environmental and
social standards and respect human rights, including worker's
rights. By mandating high standards, OPIC aims to raise the
industry and regional standards of the countries where it funds
projects. OPIC services are available for new and expanding
business enterprises in more than 160 countries worldwide. For more
information, visit website: www.opic.gov
About EBRD:
The EBRD is a multilateral bank committed to the development of
market-oriented economies and the promotion of private and
entrepreneurial initiative in more than 30 countries from Morocco
to Mongolia and from Estonia to Egypt. The Bank is owned by 65
countries, the EU and the EIB. The EBRD’s strategic plan for the
countries where it invests for the period 2016-18 has three
priorities: strengthening economic resilience, addressing global
challenges and supporting regional integration. Follow us on the
web, Facebook, LinkedIn, Instagram, Twitter and YouTube.
About EDC:
EDC is Canada’s export credit agency, providing financial
services for companies that buy from Canadian companies, or those
that have Canadian supply and services in their corporate value
chains. EDC’s financing can be used for capex and/or project
finance requirements, either through bilateral or syndicated
corporate facilities. Operating on commercial principles, EDC has a
partnership-preferred philosophy to collaborate with private-sector
financial institutions to share risk and create greater capacity
for Canadian trade transactions. EDC is committed to Corporate
Social Responsibility, and it takes into account the environmental
and social impacts of its transactions. For more information, visit
www.edc.ca.
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GE TurkeyOzlem Aksoyozlem.aksoy@ge.com+90 533 367
2722orGE HealthcareLisa FarrugiaLisa.Farrugia1@ge.com+90 530
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