The European Investment Bank (EIB) is providing EUR 400 million (US$ 457.63 million) for the rehabilitation and renovation of Schleswig-Holstein University Hospital (UKSH). The large-scale project concerns the hospital’s two sites in Kiel and Lübeck and is due to be completed by 2020.

The project will be carried out as a real estate PPP (public-private partnership). With EUR 100m (US$ 114.40 million) the EIB provides the project company with the largest share of the long-term risk financing. Apart from the EIB, six commercial banks will be involved. Besides the structured long-term financing of the project company the EIB also makes EUR 300m (US$ 343.26 million) available to the hospital for the completion of its responsibilities in the context of the project contracts.

With more than 70 clinics and institutes, UKSH is the second-largest university hospital in Germany, after Berlin’s Charité. For the 2.8 million or so inhabitants of Schleswig-Holstein UKSH is the only clinic in the federal state offering highly specialised tertiary care, i.e. comprehensive specialist care in every field. With its 12 500 employees, the hospital is also the biggest employer in Schleswig-Holstein. The modernisation programme aims to provide modern medical care in the long run and at the same time make the hospital more efficient and hence more competitive.

The wide-ranging refurbishment and renovation of the buildings will be assigned to the private partner, a construction consortium established as a special-purpose vehicle. The federal state of Schleswig-Holstein will remain the owner. The investment programme will cost a total of around EUR 800 million (US$ 915.27 million), of which EUR 520 million (US$ 594.92 million) will be invested in the construction projects in Kiel and Lübeck. Over the entire project cycle of 30 years, the total cost will come to around EUR 1.7 billion (US$ 1.94 billion). Apart from the construction, the project comprises the subsequent operation and ongoing maintenance of the buildings.