European Investment Bank, Bank of Ireland and NORD/LB agree financing for first residential community healthcare Public-Private Partnership (PPP) with Equisisk
Seven community nursing units to enhance local residential care for older people and people with dementia across Ireland
530 short and long stay bed in Cork, Kerry, Kilkenny, Louth, Tipperary and Westmeath
Local residential care will be transformed across Ireland under €250 million PPP investment backed by the European Investment Bank, Bank of Ireland and NORD/LB and implemented by Equisisk. The first ever PPP financing for community nursing, agreed this week, will back construction and maintenance of seven new quality residential social care facilities across Ireland.
Equisisk, a joint venture company constituted of Equitix and John Sisk & Sons, has been appointed to design, build, finance and maintain the community nursing units for a 25-year period before the facilities are handed to the Irish Health Service Executive. The HSE will provide all care and clinical services to residents.
”Equitix is delighted to reach financial close on these essential community healthcare assets. The project will play a vital part in responding to the challenges of Ireland’s ageing population and is considered a vital important social and national healthcare project. The projects aim is to improve access to high quality elderly and long-term care throughout Ireland, replacing the existing units. This project sees Equitix reaffirm its commitment to investment in Ireland.” said Michael McBrearty, Managing Director of Investment for Equitix.
“The European Investment Bank is pleased to provide EUR 100 million backing for the Community Nursing PPP project that will deliver quality health and social care for older people across Ireland. The seven new person-centred community nursing residential centres will include state of the art facilities and improve the choice of care.” said Christian Kettel Thomson, Vice President of the European Investment Bank.
“The provision of these community nursing units will make a significant impact to the care of the elderly and those with dementia. Bank of Ireland’s purpose is to enable communities to thrive and it is important that older people can live and be cared for in their own locality. We are fully committed to supporting current and future Irish infrastructure projects being promoted by Government Departments and State Agencies.” said Eoin Hartigan, Head of Origination, Project Finance, Bank of Ireland.
“NORD/LB is delighted to provide debt and hedging facilities to support the financing of this PPP, building and maintaining essential care infrastructure for the Health Service Executive. We are pleased to be able to support our clients Equitix and Sisk in reaching financial close, building on our existing franchise in Ireland” said Sean Cook, Head of Infrastructure Origination, Europe, NORD/LB.
Construction of the new facilities is expected to start in the coming weeks and enable the new community nursing centres to be completed by 2024. The brand-new energy efficient community nursing homes will include both single and twin bed bedrooms, dining, recreational and care rooms, overnight accommodation for family visits and clinical treatment, physiotherapy and occupational health facilities.
Transforming local residential nursing across Ireland
A total of 530 beds will be delivered at sites in Ardee (50-beds), Athlone (50-beds), Clonmel (50-beds), Killarney (130-beds), Midleton (50-beds), St. Finbarr’s, Cork (105-beds), and Thomastown (95-beds).
Dementia specific beds are included in Killarney (three ten bed households), St Finbarr’s (three ten bed households) and Thomastown (two ten bed households) as well as a Day Centre in Athlone.
Financial close for first community nursing PPP
Financial close for the EUR 250 million Community Nursing PPP project was reached on 7th December.
Irish government announcement of Community Nursing PPP project
The Project comprises the design, build, finance and maintenance of seven Community Nursing Units (CNUs) across different regions of Ireland using a PPP framework. These Nursing Units will replace existing ones that are considered non-compliant with HIQA (Supervision Authority for Acute and Community Services) regulations.
14 new Primary Care Centres are to be built across Ireland following agreement of a new EUR 70 million 25-year loan from the EIB. This represents the EIB’s first support for healthcare investment in Ireland and the first dedicated backing for Primary Health Care anywhere in Europe. The new PPP-based scheme will support the shift from hospital based healthcare to community based care closer to patients.
The EIB provided more than EUR 825 million for long-term public and private sector investment across Ireland during 2016. Backing for 12 different initiatives to improve crucial services, enhance key infrastructure and unlock economic opportunities represented the largest number of schemes supported in 24 years.