Build-lease-transfer contracts in terms of health facilities in Turkish law

Public-Private Partnerships (PPP) is an alternative project financing model that enables the participation of the private sector in the provision and financing of public services. One sub-model of PPP, the Build-Lease-Transfer (BLT) model, has been implemented in the healthcare sector in our country. In the BLT model in the healthcare sector, the contractor company completely finances the construction of a healthcare facility. The contractor company leases the facility to the administration for a specified period to provide healthcare services, and it generates its return on investment from rental income. At the end of the contract, the healthcare facility is transferred to the administration free of charge, in an operational state. As a result, the administration becomes the owner of a healthcare facility that has been constructed with private sector financing and is suitable for operation at the end of the contract period.The contract signed between the administration and the contractor company under the BLT model is a combined type of mixed contract. The contract includes the typical obligations of a construction contract, which are the construction works, and the typical obligations of a lease contract, which are the lease of the facility. In case of disputes, the provisions related to these contracts will be applicable to the extent that they arecompatible with the nature of the BLT contract.