Astaldi wins €940m Turkish hospital concession

Italy’s Astaldi Group, through its joint venture with Turkish construction firm Turkerler, has received a letter of award for the design, construction and operation of the Etlik Hospital complex in Ankara, Turkey. The letter of award is preliminary to the signing of a contract.

The total investment value for the project is €940 million at current exchange rates, with the contruction contract alone worth €567 million. Work on the complex, which when complete will be the largest of its kind in Europe, will begin next year. 

The transaction involves a 28.5-year concession covering 3.5 years of design and construction and 25 years of operation. Concession revenues total €2.4 billion, more than 85 percent of which is guaranteed by availability payments that may be reassessed for inflation.

The remaining revenue comes from delivering the services under agreement (planned and unplanned maintenance of buildings, roads, landscaping, electrical and medical equipment and furnishings, and running the utilities).

Commissioned by Turkey’s Health Ministry, the scheme involves a 3,200-bed hospital complex divided into eight healthcare facilities and a hotel, totalling 1,080,000 square metres. Seven of the eight facilities will involve a transfer of existing facilities already operating in Ankara to the new complex. The entire facility is scheduled to be operational in 2015.

Astaldi has a growing portfolio of Turkish concessions, including the Milas-Bodrum Airport international terminal and the Gebze-Izmir road, which is currently awaiting financial close.