MADRID HEALTHCARE INVESTMENTS

Promoter – Financial Intermediary

COMUNIDAD AUTONOMA DE MADRID

Location

• Spain

Description

This project concerns investments in hospitals and primary care centres in the region of Madrid

Additionality and Impact

The project supports EIB's Health policy objective, is in line with the Urban Agenda for the EU, and aims to contribute to the priority objective of the European Commission to "make public health systems more cost-effective, equitable and sustainable". The project generates positive externalities and economic benefits through the provision of improved healthcare services including enhanced preparedness to respond to increasing demand for care by an ageing population, potential future health emergencies, and the reduction of energy consumption that benefits society and the broader economy. The project finances investment in innovative medical equipment, thus contributes to the Horizon 2020 objective.

EIB's participation will provide a financial benefit to CAM as it allows to distribute 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 supports selected healthcare investments conducted by the Comunidad Autónoma de Madrid (CAM) including the new construction, rehabilitation and equipment of 6 medium and longterm care hospitals and 11 primary care centres in the Madrid region, extension and modernisation of clinical departments within 5 hospitals and the renovation of high complexity medical equipment in hospitals and clinics. The project will address the issues of aging population and access to healthcare services in the Madrid region. It will also improve the quality of healthcare services by supporting the purchase of high-end, up to date medical equipment. The project will be located in the Autonomous Community of Madrid.

Sector(s)

• Health - Human health and social work activities

Proposed EIB finance (Approximate amount)

EUR 250 million

Total cost (Approximate amount)

EUR 518 million

Environmental aspects

The project comprises of the construction and equipping of medical facilities. Hospitals, primary care centres, etc. are not specifically mentioned in the environmental impact assessment directive 2011/92/EU amended by Directive 2014/52/EU, though the project is covered by Annex II of the Directive in relation to urban development. The Bank'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 energy performance of the hospital 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 healthcare is an element 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 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 relevant 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.

Status

Signed - 16/02/2023