MADRID LA PAZ HOSPITAL

Promoter – Financial Intermediary

COMUNIDAD AUTONOMA DE MADRID

Location

• Spain

Description

The project concerns the construction and equipment of the new Hospital Universitario La Paz (HULP) in the Autonomous Community of Madrid. It also includes the rehabilitation and extension of the Hospital Carlos III and the Hospital Cantoblanco, forming part of the HULP complex, and three primary care centres: the José Marvá, the Colmenar Viejo and the Peñagrande.

Additionality and Impact

The project supports the "Health" policy objective and aims to provide higher quality and more accessible healthcare services, responding to the demographic trends and requirements of the region. Investments in the health sector generate positive externalities that include, but are not limited to, containment of communicable and non-communicable diseases and their negative effect on individuals, as well as the indirect impact on economic productivity from a healthier workforce and population. Public health care services provision and financing ensure that the quantity and quality of investments in the sector are in line with what is socially optimal. The EIB's support will help accelerate these investments by offering significant stability to the management of the Borrower's long-term obligations, as commercial banks can typically not provide financing with maturities of this length for this type of client.

EIB's participation will provide a financial benefit to CAM as it allows distributing the cost of financing in the long term, resulting in a manageable annual debt service amount. The EIB will include flexible drawdown terms and conditions adjusted to the investment horizon of the Project, which are highly valued by public promoters and a key differentiating feature of EIB's financing. The EIB loan could have a signalling effect, facilitating additional financing for Healthcare programmes from complementary sources, which will reduce the funding uncertainly for these type of programmes in CAM.



Objectives

The project comprises the construction and equipping of medical facilities. It is expected that the project will bring wider benefits to the community as healthcare is an element of social cohesion and economic development. The overall works will be implemented in 4 phases (Phase 0 - Phase 3).

Sector(s)

• Health - Human health and social work activities

Proposed EIB finance (Approximate amount)

EUR 500 million

Total cost (Approximate amount)

EUR 1018 million

Environmental aspects

Hospitals are not specifically mentioned in the Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by the Directive 2014/52/EU), however, since it also concerns urban development the project is covered by Annex II of the EIA Directive. The EIB's services will verify during appraisal the screening decision of the competent authority. In line with Directive 2010/31/EU, the new and rehabilitated buildings will have to meet at least the relevant national targets on energy efficiency. The design energy performance of the hospital and any specific related targets to be met will be verified during appraisal. The EIB will encourage the Promoter to take into account the circular economy principles during the development and future operation of the project.

Procurement

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

Status

Signed - 2/12/2022