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Modernisation, rehabilitation and consolidation of five public hospitals in Carinthia, the southernmost state in Austria.
As a healthcare investment project aiming to modernise a health estate and upgrade its service delivery, the project responds to the Bank's primary objective "Innovation, digital and human capital" (Health). The project is therefore eligible under Article 309 point (c) common interest. The project is aligned with the Urban Agenda for the EU. The project also aims to contribute to the priority objective of the European Commission to "make public health systems more cost-effective, equitable and sustainable". The new and rehabilitated buildings are compliant with the local standard regarding the Energy Performance of buildings and therefore, are aligned with the Paris Agreement.
The project supports the Bank's primary objective "Innovation, digital and human capital" (Health). This project addresses the sub-optimal investment situation in the European health infrastructure due to market failures originating from the public goods nature of services provided by hospitals and other healthcare facilities and the large health externalities they generate. Furthermore, strategic investments in the health care sector have been shown to yield long-term health benefits, as well as economic and social returns on investment that far exceed potential private returns. The project aims to support the provision of better quality and more accessible healthcare services. By modernising health care facilities and health care delivery, the project responds to the demographic trends and health needs of the Carinthia region.
The Bank's loan provides an important contribution to the borrower's long-term funding base, fully matching the long economic life of the underlying assets. The diversification of the funding sources is key for the borrower enhancing its financial flexibility. The borrower values the flexibility of drawdowns and benefits from a drawdown period of several years reflecting the implementation period of the project.
Hospitals are not explicitly mentioned in the 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 Bank's services will verify during the appraisal the screening decision of the Competent Authority. It is expected that the project will bear more comprehensive benefits to the community as healthcare is an element of social cohesion and economic development.
The Bank will require the Promoter to ensure that contracts for the implementation of the project have been and 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 Official Journal of the EU, as and where required.