ICBC contributes $52.4 million to EUR 395 million syndicated loan for Bursa Integrated Health Campus Project

Project narrative

In 2016, ICBC contributed $52.4 million to a EUR 395 million syndicated loan agreement with Bursa Sağlık Yatırım A.Ş. (BRS) — a special purpose vehicle (SPV) and a joint venture that is owned by Meridiam Eastern Europe S.a.r.l, Ronesans Holding, Ronesans Saglik Yatirim A.S., Sila Danismanlik Bilisim Saglik Insaat Ticaret A.S., Sam Yapi ve Sanayi Ltd. Sti, and TTT Saglik Hizmetleri Egitim Insaat Sanayi Ticaret A.S. — for the Bursa Integrated Health Campus Project. The borrowing terms of the loan are unknown. The total cost of the project was EUR 513,400,000 and it was financed according to a debt-to-equity ratio of 80:20. This project involved the construction of a ‘health campus’, consisting of three buildings with a total bed capacity of 1,355: a general hospital (275 beds), cardiology (275 beds), oncology (252 beds), maternity/pediatric (253 beds), physical therapy and rehabilitation (200 beds), and high security forensic psychiatric (100 beds). The campus (or complex) also includes health support facilities, a technical unit building, possibly a commercial area, a helipad, and a tri-generation plant. The tri-generation system has a total electrical capacity of 8.8 MW that will consist of four gas engines using natural gas with a capacity of 2.2 MW each. Located in the Dogankoy (Doğanköy) neighborhood to the west of Bursa in the Nilüfer district, the campus occupies 745 hectares. The project site consists of two parts, north and south, separated by the Bursa Ring Road (E-90) and surrounded by agricultural land. The northern part of the project site surrounds privately owned agricultural land of circa 50,000m2 to which regular access will be maintained at all times. The closest settlement to the northern part is Balat (1.5 km) and to the southern part Dogankoy (1.5 km) as well as some residential areas around 50 m to the east of the site. The campus was officially inaugurated on June 20, 2019. The project was implemented on a public-private partnership (PPP) basis and through a 28.5-year construction, finance, maintenance, and transfer agreement. At the end of this period, the health campus will be transferred to Turkey’s Ministry of Health. The project is expected to improve access to high-quality health services for a population of 2.8 million people through the construction of new facilities, as well as the replacement of aging and inadequate infrastructure. Bursa is, additionally, located in a centralized area of Turkey, allowing the new health campus to provide improved health services to both Bursa residents and individuals from surrounding regions. Improved and/or new infrastructure will also contribute to improved energy efficiency in Turkey’s public hospitals.