The European Investment Bank (EIB) is lending EUR 50 million for the reconstruction of the main regional hospital of the Federal State of Carinthia situated in Klagenfurt. The modernisation will help the hospital to provide up to date medical services and achieve a more effective performance.

The loan will be intermediated by Hypo-Alpe-Adria-Bank AG - one of EIB's regional partner banks. KABEG, which is Carinthia's hospital management company, will be the promoter of the project. EIB funds will finance the construction of new hospital buildings and the renovation of the existing premises as well as investments in new hospital equipment. The Project aims for an innovative model of health service provision, which is linked closely in to the new and refurbished buildings of the Project to deliver better medical care, more cost-effectively.

The modernisation will be implemented in different stages over the period 2003-2013 and comprises the following major parts:

  • Construction of the new building of a child neuro-psychiatric clinic with 48 beds, near to the recently completed health centre for women and children;
  • Creation of a new surgical medical centre with 670 beds, which is expected to be completed by 2010;
  • Adjacent a new central and state-of-the art logistics centre;
  • Investments in a psychiatry block and further rationalisation of infrastructure.

The EIB supports projects leading to the upgrading of the health sector because an improved health state of the population as the result of better and more economical health services increases the quality of life of citizens and has positive impacts on the economic performance in the individual Member States. The Bank has recently supported the following projects in the Austrian health sector: the rehabilitation and modernisation of hospitals in Styria, the construction of the regional mother-and-child clinic in Linz and the upgrading of the regional hospital in Steyr as well as the construction of the new hospital and the upgrading of the technical equipment in Vöcklabruck.

The EIB, the European Union's long term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Outside the Union the EIB supports the objectives of the Union's development aid and cooperation policies.

The EIB has provided loans in Austria totalling to some EUR 5 billion since 1999. EIB lending in the areas of health and education represented EUR 826 million (17%) during the aforementioned period.