AAA/Aaa rated multilateral development
bank, promotes transition to market
economies in 35 countries from central
Europe to central Asia and the Southern
and Eastern Mediterranean – SEMED
In 2014, the EBRD welcomed Cyprus and
Libya as a recipient country and member
• Owned by 65* countries and two inter-
• Capital base of €30 billion.
• Invested over €95 billion in more than
4,000 projects since 1991
*Libya is yet to become a fully ratified member of the EBRD
• Results in 2014:
• €8.85 billion invested in 377 projects
• Private sector accounted for 70% share
The EBRD snapshot
Cumulative business volume of €95bn
The EBRD has been investing in
Turkey since 2009 and today, in
terms of annual business volume,
Turkey has become the largest
country of EBRD operations.
In 2014 the EBRD invested more
than € 1.5 billion for 40+ projects in
As of today, total number of
projects reached 136 with a
portfolio more than € 4billion.
In the resident offices in Istanbul,
Ankara and Gaziantep EBRD
employs 35 professional bankers.
EBRD in Turkey
Our operational priorities in Turkey:
developing sustainable energy (including support to on-going
reforms of the energy sector through policy dialogue);
promoting the development of micro, small and medium
enhancing the competitiveness of Turkish industry;
promoting market approaches toward investment in infrastructure;
support the Turkish government’s privatisation programme in the
enterprise and financial institutions sector.
Operational Priorities in Turkey
How we deliver results ?
Wide range of
for public and private
Strong, internationally recognized partner
Higher risk appetite than other lenders
Long established policy dialogue with Government and
Unparalleled presence in the region provides mitigation of
political and regulatory risks.
Preferred creditor status in all countries of operations.
Catalysts to access additional finance
Flexible deal structures and products
Dedicated team with expertise in a variety of sectors and
Donor-funded technical assistance to develop projects
EBRD’s Value-Added: a unique offering
Wide experience in PPP structures
Assistance to public/authorities:
Provide general advice on acceptable process.
EBRD Policy for Concessions.
Facilitate grant funded technical assistance.
Development of regulatory structures/PPP framework.
Help in preparation of the competitive tendering, projects.
Structuring the financing:
Commercial loan co-financing
Environmental, social, health and safety improvement of projects.
Extensive offer of tailored financial products
Loans to the private sector (up to 35%
syndicating the rest), including SME
Sovereign, sovereign guaranteed and
loans to state owned companies
Debt co-financing, working with
commercial banks and IFIs
Project finance loans (incl. PPP)
Hard/local currency. Fixed/floating rates
Syndication under preferred creditor status
Access to capital markets
Investing with majority sponsor to
reduce equity burden and add
partnership value. Typically 20-25%
Common or preferred stock
Privatization and initial public offering
Mezzanine equity and subordinated
EBRD-participated PPP Projects in Infrastructure in
PPP Loan Loan EBRD Tenor
Year Project Type Type Amount (m) Amount (m)
2014 Adana Hospital PPP DBFMO Senior Loan € 440 € 115 18 year
B-Loan cover € 100
2014 Dalaman Airport TOR Senior Loan € 175 € 87.3 16 year
2013 Mersin International Port TOR Project Bond $450 $80 7 year
2013 Asyaport Greenfield, Senior Loan $267 $92 10 year
concession on land
2012 TAV Izmir Airport TOR Senior Loan € 250 € 70 15 year
B-Loan cover € 75 15 year
2012 Eurasia Tunnel BOT Senior Loan $960 $150 18 year
2011 Privatisation of IDO Share sale, Senior Loan $650 $150 12 year
TOR on lines and piers
2010 TASK- Dilovasi Waste Water BOT Senior Loan € 13.5 € 13.5 10 year
2010 TASK- Gulluk Water BOT Senior Loan € 2.5 € 2.5 10 year
€ 2,940 € 881Total (million €)
EBRD-participated other Infrastructure Projects in Turkey
Arkas, Senior Corporate Loan, EUR 21.4 million, 2010;
Bursa Light Rail, Municipal Loan, EUR 70 million, 2011;
Bodrum Water, Municipal Loan, EUR 7.5 million, 2011;
Gaziantep CNG Buses, Municipal Loan ,EUR 10 million,
Mersin Wastewater, Municipal Loan, EUR 20 million, 2012;
ER Denizcilik, Senior Corporate Loan, USD 39.3 million,
Izmir Ferries, Municipal Loan, EUR 33 million, 2013;
Republic of Turkey - Plans for Infrastructure
EUR 200 – 400 bn in infrastructure investments over the next 10 years;
Examples of infrastructure requirements:
•EUR 12 billion hospital facilities PPP programme: up to 30 projects
tendered in 2 Phases; Phase 1 including 16 hospitals and EUR 6 billion
investment already awarded
•USD 11 billion rail network expansion over next 3 years and USD 45
billion by 2023
•Extension of dual carriageways to 36,000 km by 2023 ( 22,000km in
2012) (Expected cost of USD 80billion)
•USD 6 billion highway to Izmir; Izmit Bay Crossing
Turkey’s Plans for Infrastructure- Con’t
• Istanbul airport.
• High speed train Istanbul to Ankara
• North Marmara Highway
• PLUS: urban regeneration plan
Hospital Facilities Management PPP projects
The EBRD Board has pre-approved a financing framework of
Euro 600m for Turkey’s Hospital Facilities Management PPP programme.
• Adana Hospital PPP - signed in 2014
• Etlik Hospital PPP
• Gaziantep Hospital PPP
• Konya Hospital PPP
• Elazig Hospital PPP
• Izmir Hospital PPP
• Kocaeli Hospital PPP
Hospital Facilities Management PPP project
example-Ankara Etlik Hospital PPP
• Intended to service central Anatolia’s 12 million
• Project costs EUR 1.1 billion
• DBFLT 28.5 year concession
• 3,566 beds
• Construction, provision of medical equipment, maintenance for the facilities
• NO medical service provision
• Availability Payment from the Ministry of Health (fixed, linked to CPI and FX)
• Service Payment from the Ministry of Health (minimum guarantee; market testing
every 5 years)
• Compensation on Termination by Ministry of Health
Financing of Turkish Hospital PPPs
EBRD debt size: max 35% of total financing.
A loan: € 50-100 million ticket size.
B loan: depending on syndication to other financial institutions.
Equity investments: where appropriate.
Maturity: up to 18 years (the tenor of the EBRD A-Loan can be max 3
years more than B-Loan tenor or the tenor of parallel loans).
Pricing: market pricing linked to risk level.
Security: concession agreement, physical security, where possible,
share pledge and also linked to creditworthiness.
Due diligence: to be carried out by professional advisors.
Emphasis: smaller cities where the investment’s social role is crucial.
The projects are sizable and require significant debt and equity tickets.
Sponsors expectations are towards aggressive structures:
Over leverage ?
Are there prudent cover ratios ?
Is equity commitment risk of sponsors addressed ?
Calculation of FX risks associated with the tariff mechanism ?
Due diligence to be carried out by professional advisors is very
important (legal, technical and financial).
Project Agreements (Direct Agreement) have been finalised with the
Environmental, social, health and safety issues can be challenging for
bigger bed-size hospitals.
Integrated Approach to Hospital PPPs
The EBRD believes that the healthcare PPP programme launched by
the Ministry of Health (MoH) will have a strong demonstration effect for
the rest of Turkey including other sectors and other countries in the
The EBRD is willing to be one of the long-term financiers.
Two key areas of support by the Bank to the Ministry of Health:
a) Value for Money assessment, and
b) performance and contract management
Monitoring KPIs for various payment streams
EBRD has successful experience in financing PPP projects in the
region and in Turkey.
EBRD supports authorities in developing projects. TC grants partially
finance project preparation, implementation and institutional
EBRD offers long term debt and equity financing and takes on the
leading role in financing the private operator.
We have a long term engagement in Turkey and we would like to be a
preferred partner for both public authorities and investors.
Jean Patrick Marquet
Director – Turkey
t: + 90 212 386 1138
Director – Municipal & Environmental
t: + 44 207 338 6957
Aslı Erden Öztürk
Principal Banker – Municipal & Environmental
t: +44 207 338 6871