LONG TERM CARE DEVELOPMENT INFRASTRUCTURE II

Promoter – Financial Intermediary

VITALIA PLUS SA

Location

• Spain

Description

The project supports the Promoter's expansion plan during the period of 2023 to 2026 and entails the construction and equipping of several new facilities: long-term care centres, rehabilitation hospitals and shared assisted living homes in different Autonomous Communities in Spain.

Additionality and Impact

The Project is line with the InvestEU objective of social investment. As a social investment, the Project contributes to the implementation of the European Pillar of Social Rights. This Project addresses the sub-optimal investment situation in the European health and care infrastructure due to market failures originating from the public goods nature of services provided by health and care facilities and the large health externalities they generate. The centres financed in this Project will be located in urban agglomerations, contributing to more equity of access to affordable long-term care mainly for the elderly, and creating workplaces for the operation of centres. The Project also helps to reduce privately borne costs of long-term care by offering affordable solution. The Project responds to the demographic trends and requirements of Spain. The modern, digitalized, and well equipped long-term care premises will also help attract and retain care and medical professionals and increase their productivity.

EIB's involvement diversifies the Promoter's financing sources with customized terms lengthening its average debt maturity. It also provides a signalling effect on the quality of the Project, facilitating funding from commercial banks.

The Project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

Objectives

The project will improve access to high quality elderly and long term care centres throughout Spain. The new facilities aim to create a person-centred ethos which supports the opportunity for the residents to continue to live their own lives in accordance with their cognitive and physical abilities in an environment which reflects the comforts of home. The main purpose is to normalise care and promote the autonomy within the unit, assisting and supporting residents in everyday tasks.

Sector(s)

• Health - Human health and social work activities

Proposed EIB finance (Approximate amount)

EUR 90 million

Total cost (Approximate amount)

EUR 205 million

Environmental aspects

The project comprises the construction and equipping of elderly care centres. Elderly care centres are not specifically mentioned in the Directive 2014/52/EU amending the EIA Directive 2011/92/EU, though the projects are covered by Annex II of the Directive in relation to urban development. The Bank's services will verify the screening decision of the competent authorities during appraisal. In line with Directive 2010/31/EU, the new buildings will have to meet, at least, the relevant national targets on energy efficiency. The design energy performance of the centres and any specific related targets to be met will be verified during appraisal. It is expected that the project will bring wider benefits to the community as social and healthcare are elements of social cohesion and economic development. The Bank 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 been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the Promoter is after all subject to EU public procurement legislation (Directive 2014/24/EU) then the Bank would require the Promoter to ensure that contracts for the implementation of the project have been and will be tendered in accordance with the relevant applicable EU procurement (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.

Status

Signed - 21/12/2023