An announcement was published in the Official Gazette on 1 June 2018 for a tender to be made among predetermined bidders for the construction and lease of a healthcare campus located in İstanbul Sancaktepe, Turkey under Law No. 6428 ("BLT Law"), which concerns the construction and renovation of healthcare campuses under the build-lease-transfer model. The project entails both a healthcare campus and commercial areas. The deadline to submit pre-qualification applications is 4 July 2018 at 15:00. This announcement was made by the General Directorate of Healthcare Investments within the Ministry of Health and it makes clear that while the tender is open to joint ventures and solo participants, consortiums cannot participate in the tender. 

Project description: (i) The bed capacity of the healthcare campus has not been disclosed; (ii) the construction term has been set at 3 years and can be extended for another year in the event of necessity. The operation (lease) term will be 25 years. Thus, the total term of the project is set as 28 years, or up to 29 years in the event of an extension of the construction term. 

Pre-qualification requirements: 

In addition to the ordinary requirements set forth under the BLT Law and subsequent regulations concerning those that cannot participate in the tender, all applicants must meet the following financial, professional and technical criteria. The financial, professional and technical criteria for this project are significantly higher than other healthcare campus projects. 

Financial criteria: 

The participants:

i. Current Assets / Short Term Loans ratio shall be at least 2,00

ii. Equities / Total Assets ratio shall be at least 0,30

iii. Short Term Bank Loans / Equities ratio shall be at most 0,30. 

If one of the members in a joint venture fails to meet these ratios for the year preceding the tender (2017), the average financial information pertaining to the last two (2016 - 2017) or three years (2015 - 2016 - 2017) should meet such criteria

Furthermore, the total assets of the participants should be at least USD 750 million. In a joint venture, the lead member, who is selected by the members of the joint venture without having regard to the share ratios, should meet this requirement. 

Other criteria: 

i. The average turn-over or net sales revenue of the applicants during the last two (2016 - 2017) or three years (2015 - 2016 - 2017) should be at least USD 100 million; or

ii. The average equity of the applicants during the last two (2016 - 2017) or three years (2015 - 2016 - 2017) should be at least USD 220 million.

These requirements can be jointly met by the members of a joint venture, in which case the lead member should meet at least 51% of the required amount.

Bank reference letter: 

The total amount of deposits with no restrictions and unused cash or non-cash loans should be at least USD 250 million. Applicants should submit a bank reference letter confirming that this requirement is met. This requirement can be jointly met by the members of a joint venture. 

Professional and technical criteria: 

All applicants are required to provide evidence of the following experience:

i. construction and entry into operation of a health facility with a minimum number of 750 beds within the fifteen year term preceding the tender announcement date;

ii. implementation of an information management system for a healthcare facility with a minimum number of 750 beds, or the operation of such a system for a minimum duration of one year, either of which must have been carried out during the five year term preceding the tender announcement date;

iii. provision of imaging services worth at least 2 million TL to a healthcare facility during the five year term preceding the tender announcement date; and

iv. provision of laboratory services worth at least 3 million TL to a healthcare facility during the five year term preceding the tender announcement date. 

All applicants are also required to submit an ISO 9001-2000 Quality Management System Certificate and an ISO 14001 Environmental Management Certificate. These certificates may be submitted by one of the members in a joint venture.