Professional Documents
Culture Documents
Turkey Hospital PPP Project - Mr. Simon Jianjun Zhang - ICBC
Turkey Hospital PPP Project - Mr. Simon Jianjun Zhang - ICBC
Turkey Hospital PPP Project - Mr. Simon Jianjun Zhang - ICBC
March 2021
ICBC at a Glance
Integrity Leads to Prosperity
2
ICBC at a Glance Integrity Leads to Prosperity
ICBC is the largest commercial bank in China, and a Financial Highlights (2020.6.30)
leading bank worldwide in terms of total assets. For Total Assets $4,681 Bn
the eighth consecutive year in 2020, the Bank ranked Overseas Assets $429 Bn
1st place in the three authoritative lists of The Banker's Tie 1 Capital $383 Bn
Top 1000 World Banks, the Forbes Global 2000 and Revenue $63 Bn
the Fortune Global 500 Sub-list of Commercial Banks. Net Income $21 Bn
ICBC at a Glance Integrity Leads to Prosperity
We serve for
500k institutions clients
660 million individual clients 8.5 million coporate clients - Including 7000 financial institutions
425 overseas
institutions
covering 6
continents and
49 countries
1442+
corresponding
banks covering
143 countries
ICBC at a Glance Integrity Leads to Prosperity
The Ministry of Finance or central budgetary authority assesses, accounts for, and signs off on the long-term fiscal implications
of a project both before launching procurement and signing a contract.
There is a system in place to track the fiscal impact of PPPs such as inclusion of PPP projects in the budget, accounting for and
reporting on them.
The project is selected, assessed, and prioritized together with all other public investment projects in accordance with national
public investment plans and strategies.
The project is adequately justified based on the following types of assessments:
The results of the above-mentioned assessments are included in the tender documents.
The results of conducted assessments are published online.
The tender documents are published online.
The procuring authority prepares a draft PPP contract and includes it in the request for proposals and/or tender documents.
The procuring authority has developed standardized PPP contracts and/or transaction documents to facilitate the procurement
process and to guarantee consistency.
The HTP aimed at increasing the administrative and financial autonomy of hospitals.
Facing constraints on public resources and fiscal space, while recognizing the importance of investment in
infrastructure to help their economies grow, governments are increasingly turning to the private sector as an alternative
additional source of funding to meet the funding gap.
There are 18 hospital projects implemented on PPP basis in Turkey, with more than 27,000 beds. Some of them are ongoing and
some of them are already in operation.
ICBC paticipated in several hospital PPP projects in Turkey , two Projects in operation are as follows:
Bursa Hospital PPP
1,355 beds integrated healthcare campus located in Bursa.
Project cost is EUR 487 mio.
the hospital is operational as of 16 July 2019.
MoH Direct
Agreement
Project
Agreement
Shareholders’ Loan
Agreement
Sponsors Project Company
Facility
Lenders
Direct
EPC O&M Agreement
Contract Contract
The Structure of the Hospital PPP project in Turkey is standared and typical.
Hospital PPP Project in Turkey Structure and Mechanism
3 Years 25 Years
Investment Operation
Period Period
The Project revenues that are denominated in Turkish lira (“TRY”) will comprise Availability Payments, Service
Payments and Commercial Revenues.
+ Commercial Revenues
4.1. Availability Payments: Payable in advance by the Administration to the Project Company at the beginning
of each quarter in consideration of usage of the health facilities during the relevant period.
4.2. Service Payments: are the maximum net amount payable to the Project Company in consideration of the provision of
the services by the Project Company excluding VAT and any other taxes and duties that are payable. Service payments
shall be made by the Administration to the Project Company on a monthly basis.
1 Project Company Default Equity Expenses + Senior Debt Termination Amount + cost due to early termination
Equity Expenses + Senior Debt Termination Amount + cost due to early termination +
2 Administration Default
loss of profit calculted according to the Financial Model
Equity Expenses + Senior Debt Termination Amount + cost due to early termination +
3 Force Majeure
loss of profit calculted according to the Financial Model
Payment adjustment against Inflation and FX Capped Variation Orders (1% and up to 20%)
Capped Deductions (20% of Service, 10% of Availability) Protection against Change in Law
No Double Counting for Deductions and Penalties Insurance Risk taken by MoH if insurance not available
Market Testing for Services (every 5 years) VAT Exemption for CAPEX
Lenders sign Direct Agreements with the MoH ICC International Arbitration for Dispute Resolution
Lenders’ step-in rights allow the lenders to select, with the consent of the
procuring authority, a new concessionaire to perform an ongoing PPP
project in cases when the initial private partner is at risk of default.
The government will pay the ermination on compensation, and the debt
will be fully covered in any circumstances.
Hospital PPP Project in Turkey Structure and Mechanism
Turkey got 75 in the score of PPP contract Management, which is above the average of ECA countries and Upper Middle Income
countries.
Hospital PPP Project in Turkey Structure and Mechanism
COVID-19 is expected to have an impact on the full spectrum of the Project lifecycles of Hospital
PPP Projects in the short-, medium-, and long-term.
Due to pandemic, inpatient occupancy ratio and daily admitted patient number has decreased.
Some of the Hospital PPP Projects are designated as the“pandemic hospital” for the COVID-19
infected citizens in the Cities of Turkey. These hospitals are included in detailed COVID-19
Pandemic Management Plan of Turkey and the plan includes an action table for COVID-19
management in the hospitals, the actions have been defined for all these issues and the relevant
actions are being continuously taken.
Disclaimer
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