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IFC Makes First Investment in Turkey’s Health Sector


Corrie Shanahan
Phone:+(202)473-2258
Fax:+(202) 974 4384

Email:
cshanahan@ifc.org


Washington, DC. July 22, 2003.—The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has signed a $11 million loan agreement with the MESA Group to finance the construction and commissioning of a private hospital in Ankara.

The total cost of the project is estimated at $45 million. This is IFC’s first investment in the health sector in Turkey, a country viewed as having strong potential for future growth in this sector.


“We are delighted to expand our health sector portfolio to Turkey,” said Guy Ellena, director of IFC’s health and education department. “We have identified Turkey as a high priority country in the health sector. Our strategy is to support projects which foster efficiency and innovation and which are in line with the government’s objectives of promoting private sector involvement in social service delivery.“


MESA is a well-established, Ankara-based industrial group with interests in the construction, tourism, and retail sectors. Establishing the proposed hospital is the first step towards MESA becoming a significant long-term player in Turkey’s health care sector. IFC has invested with MESA once before, in a successful hotel venture in the late 1980’s.


The hospital will expand access to quality health care in Ankara and demonstrate best practice administration and patient care. It will also be a forum for medical seminars and conferences, aimed at professionals as well as the general public.


“IFC is very pleased to be working once more with MESA. They proved to be an excellent partner for us in an earlier deal in the tourism industry and we look forward to enjoying the same sort of mutually beneficial collaboration in the health sector,” said Khosrow Zamani, IFC’s director of Southern Europe and Central Asia.


In addition to providing long-term financing, which is currently unavailable to private hospitals in Turkey, IFC will help MESA sharpen its overall hospital strategy and design and implement appropriate management for the facility.


The approximately 115-bed hospital will offer a full range of medical and surgical care, 24-hour emergency services, and outpatient general and specialist consultations. The core clinical units will be supported by a comprehensive clinical laboratory, a full-service radiology department, and other auxiliary services. It will be housed in a five-story building of about 24,000 square meters located in the Sogutozu neighborhood of central Ankara, a rapidly growing commercial and middle-class area.


The frame of the hospital has already been built, funded with a $19 million equity contribution from MESA. The physical completion and commissioning of the facility is expected in late 2004.


IFC's mission (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's committed portfolio at the end of FY02 was $15.1 billion with an additional $6.5 billion held for participants in loan syndications.