ALRIJNE REGIONAL SUSTAINABLE HEALTHCARE

Financing the first phase of the long-term investment programme of Alrijne Zorggroup aimed at sustainable healthcare delivery, considering the changing demographic environment of the Zuid Holland province.

The project supports the Promoter in the implementation of its investment programme, which has been designed to improve the quality and efficiency of its services delivery as well as for a better integration of hospital, ambulatory and long-term care. The project mainly entails the consolidation of all inpatient and most of the outpatient services in a new building of the existing site in Leythendorp and the replacement and renovation of two existing nursing homes. By combining two locations in one, efficiencies and economies of scale can be attained. Furthermore, the project will improve the Promoter's capability to handle future pandemics such as the current COVID-19 outbreak.

The purpose of the project is to finance the first phase of the long-term investment programme of Alrijne Zorggroup aimed at sustainable healthcare delivery, considering the changing demographic environment of the Zuid Holland province. This project addresses the sub-optimal investment situation in the European health infrastructure due to market failures originating from the public goods nature of hospitals and other healthcare facilities and the large health externalities they generate. The project generates benefits through the provision of improved hospital, outpatient care and long-term care services and the reduction of energy consumption. By providing integrated and efficient healthcare services of higher quality, the project aims to respond to the changing needs of an ageing population, hit by the COVID-19 crisis, and to developments in healthcare practices. The operation will ensure that Stichting Alrijne Zorggroep has sufficient financial resources for the timely implementation of the project; it will allow the promoter to spread out its investments and ensure that the tenor of the loan aligns with the economic life of the asset being financed. The Bank's provision of 25-year financing provides significant stability to the management of the Borrower's long-term obligations.

Hospitals and buildings for assisted living are not specifically mentioned in the EIA Directive 2014/52/EU amending the Directive 2011/92/EU, though the project might be covered by Annex II of the Directive in relation to urban development. The compliance with requirements of the EIA Directive 2011/92/EU as amended by 2014/52/EU on Environmental Impact Assessment (EIA) and Habitats Directive will be verified during appraisal. It is expected that the project will bear wider benefits to the community as healthcare is an element of social cohesion and economic development.

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation, then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.