InvestEU: CEB to support Municipality of Bucharest with €1.8 million in technical assistance to improve healthcare infrastructure
24 April 2024
Paris – The Council of Europe Development Bank (CEB) and the Municipality of Sector 6 in Bucharest, Romania signed a €1.8 million grant agreement to finance the planning and implementation of a greenfield hospital. This technical assistance is supported by the InvestEU Advisory Hub and will complement a CEB €72.9 million loan, backed by an InvestEU guarantee, for the hospital construction.
While there have been improvements in life expectancy, Romania’s healthcare outcomes continue to lag behind the EU averages. The new hospital will provide inpatient and outpatient services to approximately 400,000 citizens of Sector 6 and beyond, addressing the evolving health needs of the capital city. With a plan to recruit nearly, 1 200 staff, it will also contribute to retaining medical professionals in the country by offering better working conditions.
The InvestEU Advisory Hub will fund the project management expenses during the preparatory and design phase, to ensure adherence to best practices and an efficient implementation of this large and complex construction project. “We are thrilled to support the development of healthcare infrastructures in Bucharest. We have been engaged alongside the Municipality of Sector 6 for a couple years now to prepare this project and look forward to seeing this hospital becoming a reality,” said Tomáš Boček, CEB Vice-Governor for Target Group Countries.
“We are thrilled to support the development of healthcare infrastructures in Bucharest. We have been engaged alongside the Municipality of Sector 6 for a couple years now to prepare this project and look forward to seeing this hospital becoming a reality,” said Tomáš Boček, CEB Vice-Governor for Target Group Countries.
“I am thankful for CEB’s support to build a new hospital, tailored to our needs in Bucharest Sector 6. This is the first time a hospital will be developed through a Design-Build Equip-Maintain contract and we hope this will help fast track the establishment of this much needed hospital to serve our citizens,” said Ciprian Ciucu, Mayor of Sector 6 of the Municipality of Bucharest.
The Romanian legislation allows for public hospitals to be managed by the Ministry of Health or local or county councils. This will be the first time a Romanian municipality directly builds and manages a public hospital, ensuring that the medical services meet the needs of its community. This project will also pioneer the use of a Design, Build, Equip, and Maintain (DBEM) contract, an integrated procurement model that offers a comprehensive and efficient approach to infrastructure development, streamlining the project lifecycle and often leading to faster project delivery compared to traditional procurement methods. The project has been prepared with the support of TUD Group, financial and technical adviser from the conception to financial close.
About the Municipality of Sector 6 in Bucharest, Romania
Sector 6, the final recipient, is a territorial administrative subdivision of Bucharest according to the Government Emergency Ordinance (GEO) No. 57/2019 on the Administrative Code. Sector 6 represents 17% of Bucharest’s surface (the second largest district). Sector 6 hosts about 400,000 inhabitants, approx. 20% of the Bucharest population of 2.1 million. Women represent 54% of the population of sector 6 and individuals of 60 years and above, 25% of the population.
About InvestEU Advisory Hub
The InvestEU Advisory Hub support is aligned with the objectives of the InvestEU Programme, and it will be delivered through a number of thematic advisory initiatives in the InvestEU eligible sectors and priorities. The InvestEU Advisory Hub aims to:
About the CEB
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.
