‘PPP nvestors are so careful n choos ng where they nvest’

Turkey’s Ronesans Health Investment and Japan’s Sojitz have concluded a $1.5 billion financial deal with eight international investors for their joint city hospital in central Istanbul. Fully 80% of the total investment of the project was thus met with the financial closing agreement (for an 18-year term), which was signed in Istanbul on July 21 this year by the project owners with JBIC, NEXI, SMBC, BTMU, Nippon Life Insurance Company, Dai-ichi Life Insurance Company, the Iyo Bank and Standard Chartered. The hospital will be the world’s largest building with seismic isolators, which means it will rest on flexible bearings or pads that will allow it to barely move, if at all, during an earthquake. There are private equity investments in Turkish hospitals from a number of countries including the Qatari firm, The First Investor, which increased its stake last year. Multilateral agencies such as the EBRD are investing heavily in the country; the Ministry of Health has progressed with many of its planned projects and is shortly due to announce a new batch. Stating that international PPP investors are particularly careful in choosing where they invest, Sadak Choudhury, chief executive at PPP Experts, said: “Such investments happening in Turkey are a good indicator of the investment environment. The diversity of the investors, including the Middle East, Asia and Europe shows the Turkish market is particularly resilient.” He added that the Turkish PPP program is notable due to its focus and size, as well as the fact that the hospitals are some of the largest ever medical-related PPPs.