All agreed loans

Estonia. Ida-Viru Central Hospital Foundation

Date of agreement: 18 Mar 2020
Country: Estonia
Customer: Ida-Viru Central Hospital Foundation
Amount in EUR: EUR 15 million
Maturity: 17 years
NACE sector / loan type: Health care sector
Business area: Infrastructure, transportation and telecom

Project

The loan has been granted to finance the infrastructure investments at the Ida-Viru Central Hospital between 2019 and 2023.

The hospital provides healthcare services in two locations in the Ahtme and Järve districts.

In Ahtme, the investments include extensions to the curative care hospital and the health centre buildings, as well as renovating an old block in the hospital.

In Järve, the main projects are the construction of a new primary health centre and the renovation of the outpatient clinic.

This is the second phase of the infrastructure development project at the hospital after the first phase was finalised in 2013. Phase II is scheduled to be completed by the end of 2023, and its total cost amounts to approximately EUR 41 million.

NIB’s financing structure is divided into two parts: a EUR 9 million loan and a EUR 6 million uncommitted credit facility.

Ida-Viru Central Hospital (Ida-Viru Keskhaigla) is the largest hospital in North-East Estonia. It provides specialised medical services for 175,000 inhabitants in the region.

Fulfilment of NIB's mandate

The hospital is the largest healthcare provider in Ida-Viru region and plays an important role in public service infrastructure in Estonia. It is part of the strategic Hospital Network, which is the backbone of the country’s specialised medical care services, providing both in- and out-patient care, as well as emergency care services.

The project will substantially improve the hospital’s service quality. It is also anticipated that the investments will result in financial savings and an increase in potential capacity of the hospital.

The hospital currently provides services in physically worn-out buildings. The modernisation will provide a better treatment environment for both patients and hospital staff.

Estonia, like most of the countries in the region, is facing challenges related to ageing. The quality of healthcare infrastructure will therefore be of vital importance in the upcoming decades.

Sustainability summary

No significant sustainability issues have been identified in relation to the project.

Press release

Põhjamaade Investeerimispank rahastab haigla hoonete arendamist Ida-Virumaal