MODERNISATION DU CHU DE MONTPELLIER

The project concerns a multi annual modernisation programme of the University Hospital of Montpellier (CHU-M), which consists of renovation and extension interventions on different buildings on the hospital campus.

The project is part of a master plan to improve the provision of medical and mental health services through upgraded and extended health infrastructure of the second largest university hospital in the Occitanie Region after Toulouse (ranking 7th out of 32 in France) and its medical university which celebrated its 800th anniversary in 2020 as the oldest in Europe. The masterplan was approved by the National Health Investment Council and prioritised by the "SEGUR Investissement".

The Project concerns the modernisation of facilities of the University Hospital of Montpellier (Centre Hospitalier Universitaire de Montpellier, "CHU-M"). The Project addresses the sub-optimal situation of investment in European healthcare infrastructure due to market failures resulting from the nature of public good of hospital assets and healthcare institutions more generally, despite the significant health externalities they generate. The Project is eligible for EIB financing under the Innovation, digital and human capital" Public Policy Goal under both the "Health" and "Education and Training" subobjectives by supporting the modernisation of a public university hospital in France. The Project is aligned with TechEU, which supports tertiary education. The Project further contributes to the European Commission's priority objective "Better health and care, economic growth and sustainable health systems", namely improving the healthcare services available to regional populations. It is also fully aligned with the priorities set by the national and regional authorities, as evidenced by the French State support through the National Health Investment Council and the Regional Health Agency of Occitanie. The Project supports two cross-cutting objectives, cohesion and Climate Action and Environmental Sustainability through energy efficiency improvements.

The Project tackles the inadequacies of dilapidated facilities that require modernisation to efficiently adapt to the evolution of the healthcare sector and local needs. The modernisation of the hospital will provide the technology and infrastructure that are required to implement the necessary clinical and organisational changes. The new, modern, and efficient hospital facilities will improve the quality and cost-effectiveness of the health services and expand the capacity made available to the population. Other benefits, such as greater comfort for patients and staff, are among the expected results of this operation. Wider economic benefits are also foreseen in terms of general health and social well-being for the entire population. As the CHU-M is located in an EIB priority cohesion region, the Project will support the EU's economic, social and territorial cohesion.

In addition, the EIB loan will (i) provide the CHU-M with attractive terms and conditions (long tenor as well as availability / grace periods, flexible interest rates / disbursements / repayments) compared to those commonly available in the market, and (ii) improve and diversify its funding base.

Hospitals are not explicitly mentioned in the environmental impact assessment (EIA) Directive 2011/92/EU (as amended by 2014/52/EU), though the project is covered by Annex II of the Directive concerning urban development. The compliance with requirements of the EIA Directive 2011/92/EU, as amended by 2014/52/EU on EIA and Habitats Directive, will be verified during appraisal. It is expected that the project will bear comprehensive benefits to the community, as healthcare is an element of social cohesion and economic development.

The promoter shall ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.