The European Investment Bank (EIB) has reached an agreement with a Mota-Engil-led society to provide a €107m ($114.9m) loan to build Hospital de Lisboa Oriental in Marvila, Portugal.
EIB’s investment is projected to ensure improved bed distribution across the city along with modern healthcare access.
This marks the institution’s first direct hospital loan in Portugal and is part of its primary objective, ‘Innovation, digital and human capital (Health)’.
According to EIB, its funding can amount to up to €190m in a long-term loan.
The bank’s broader objectives include enhancing public service provision and addressing health inequalities, a significant challenge in Portugal.
Entailing an investment of approximately €380m, construction on Hospital de Lisboa Oriental is expected to commence early this year. The hospital will comprise 875 inpatient beds.
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This project is being developed under a public-private partnership predominantly involving Mota-Engil Group companies.
Once opened, the new hospital will replace around six old existing central healthcare facilities, managed by one entity, Centro Hospitalar de Lisboa Central, EPE – CHLC, spread across more than 100 buildings in the city centre.
The construction of this hospital also aligns with Portugal’s healthcare reforms over the past two decades, focusing on cost reduction and system efficiency.
In addition, the hospital will contribute to the redevelopment of the city’s old harbour area.
Its location has been strategically chosen for its accessibility, especially from the suburban regions.
EIB Equity, Growth Capital and Project Finance head Alessandro Izzo said: “The EIB is financing much-needed infrastructure for the city of Lisbon, enabling the improvement of health services through modern and convenient infrastructure.
“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, especially in a context characterised by rising interest rates and high volatility.”