Finland: Hospital in Helsinki gets €100 million EIB loan

This article is published in association with European Investment Bank.

• EIB commits €100 million for construction of Laakso Joint Hospital in Helsinki
• Project to integrate psychiatric and neurological treatment, rehabilitation, geriatric and palliative care
• Loan builds on EIB’s track record of supporting Finnish hospitals

The European Investment Bank (EIB) is lending €100 million for the development in Finland of the Laakso hospital complex in the Helsinki metropolitan area. The loan to the Laakso Joint Hospital project marks the initial installment of up to €480 million in EIB financing that has been approved for the project.

The planned state-of-the-art hospital will bring together psychiatric and neurological treatment, rehabilitation, geriatric and palliative care, enhancing medical services and accessibility for more than 1.7 million residents of the Uusimaa region in which Helsinki is located. New hospital buildings are being constructed, and two old buildings are being renovated, with the project expected to be completed by 2030.

“Supporting investments in hospitals and healthcare infrastructure is a key pillar of our health and life sciences portfolio,” said EIB Vice-President Thomas Östros. “The support for Laakso Joint Hospital will improve healthcare in the wider Helsinki region and contribute to a more resilient community. This is a great example of the EIB’s mission to improve people’s lives by providing favorable long-term financing. We are committed to fostering innovation and human capital in Europe.”

The project involves collaboration between the City of Helsinki and HUS Group, the joint authority for Helsinki and Uusimaa. It will offer patients and health care professionals a modern, integrated healthcare environment. The hospital will feature mental health and neurology wards, outpatient centres and specialised units including a drug-addiction centre and an eating-disorders department. Dedicated services for adolescent and children’s mental health, as well as palliative care, will be provided.

Strategically located in the Laakso area, the hospital will connect directly to the Helsinki University Hospital complex via an 800-metre tunnel, ensuring seamless access to specialised care and rehabilitation services.

“The finance contract signed with EIB enables us to proceed smoothly with our hospital project. This is one of the largest hospital projects implemented in Finland with an estimated implementation cost of € 1 billion. Therefore, securing the financing for the project plays a significant role”, states Marko Virtanen, CEO of real estate limited company Laakso Joint Hospital.

The EIB has extensive experience in financing Finnish hospitals, with over €2.5 billion provided towards the health care sector in Finland in the past 20 years. This includes facilities across the country, from Helsinki to Rovaniemi.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. In 2023, the bank’s investments included more than €21 billion as part of REPowerEU, an initiative to reduce Europe’s dependence on fossil fuels and accelerate the green transition.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil-fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

In 2023, the EIB Group pledged almost €1 billion in financing for new projects in Finland, supporting investment worth nearly €4.4 billion. This is part of the nearly €8 billion of EIB Group financing provided in the country over the past five years.

The City of Helsinki and HUS are reforming the Laakso Hospital area. This construction project is called the Laakso Joint Hospital. The area will be built up in phases from 2022 to 2030. The Laakso Hospital will house psychiatric and neurological treatment and rehabilitation and medical care facilities. Customers and patients will receive help from one single location, and professionals in different fields can collaborate to facilitate the solving of treatment-related issues.