Financing agreed for Portugal hospital PPP

Financing has been arranged for the new Hospital de Lisboa Oriental PPP project.

Credit: EIB

The European Investment Bank (EIB) has agreed to provide a €107m loan to support the deal, which will see a group led by Mota-Engil design, build, finance, operate and maintain (DBFOM) a new hospital under a 30-year contract.

The new hospital will replace six old hospitals, spread over more than 100 buildings in the city centre, with the contract valued at €380m.

Construction on the project is due to begin early this year and will provide a hospital with 875 inpatient beds, located in Marvila, in the east of Lisbon.

“We are happy to make this financing possible under favourable conditions, thereby attracting other investors who would otherwise be discouraged by the long term of the loan,” said Alessandro Izzo, head of equity, growth capital and project finance at the EIB.