Paris Office Advises on the Largest Healthcare PPP Project in Turkey

July 31, 2017

The Ikitelli Integrated Healthcare project represents significant collaboration between the Republic of Turkey and Japan.

Willkie represents the leading Turkish construction group Rönesans and the Japanese conglomerate Sojitz Corporation, acting together as the project sponsors and the shareholders of the project company, in connection with the implementation of the project for the design, construction, financing, operation and maintenance, as well as the supply of facilities and equipment of, the Ikitelli Integrated Healthcare project. This project is the largest healthcare PPP project in the Republic of Turkey in terms of capital expenditure and the third largest in terms of number of beds. The total project costs will reach JPY 203.75 billion (approx. USD 1.83 billion).

The project is unique from many different perspectives. Arranging a bankable financing structure and securing a large amount thereof was of strategic importance for the sponsors. In addition, with around 2,000 seismic isolators expected to be installed in its main hospital building, ─░kitelli Integrated Health Campus will become the world’s largest building with seismic isolators when completed. Finally, the project constitutes an unprecedented joint collaboration between the Republic of Turkey and Japan, with the Japan Bank for International Cooperation (JBIC) providing directly nearly 50% of the total financing and commercial lenders benefitting from a political risk guarantee from JBIC for a portion of the financing, and an insurance coverage for the rest of the financing extended by Nippon Export and Investment Insurance (NEXI).

The project, with a 3-year construction period and a 25-year operation and maintenance period, is designed to offer a total capacity of 2,682 beds and aims to serve 100,000 visitors per day with its 10,000 employees. The campus will be separated in two parts on over 1,000,000m². The northern part of the campus will include six hospital buildings, a diagnostic and treatment block, one central plant, an administration area and a conference hall. The southern part of the campus will consist of a psychiatric hospital and a physical therapy and rehabilitation hospital. The project is planned to start operations by October 2020.

The Willkie team was led by Paris partner Amir Jahanguiri and included associates Roy Charles Bates, Cédric Gamambaye Dionmou and Idama Al-Saad.