Sweden’s first healthcare PPP project reached financial close on 30 June 2010. The project involves the construction of a new hospital, patient hotel and research facilities at Solna, located approximately 4km North West of Stockholm.
Karolinska Hospital is a university hospital in Sweden with two major sites in the municipalities of Huddinge and Solna. The hospital is affiliated with the Karolinska Institute, which is one of Europe’s largest medical universities.
The present Karolinska University Hospital at Solna is spread over a large area and consists of more than 40 buildings, with many of these buildings dating back to the 1930s. The new hospital will replace the existing hospital, with the old buildings being converted into housing or offices. The new hospital will contain 402 in-patient beds in single rooms, about 140 critical care places, 100 out-patient beds, 35 operating theatres and 100 rooms in a patient hotel. Construction of the main hospital buildings is expected to be completed by 6 October 2017.
Construction costs for the project total SEK 14.6bn. 50% of the construction costs will be paid directly by Stockholm County Council, the procuring authority, while the other 50% will be funded by debt and equity. A total of SEK 1.18bn of equity will be invested, with 50% being provided by each of the project sponsors, Skanska and Innisfree. A total of SEK 8.76bn of debt will be provided, with a tenor of 28.5 years. The banks lending to the project are EIB, NIB, BBVA, Crédit Agricole, DnB NOR, KfW IPEX, Lloyds TSB, Mizuho, Natixis, Nordea, Skandinaviska Enskilda Banken and Svenska Handelsbanken.
PwC acted as financial advisors to Stockholm County Council and RBC acted as financial advisors to the consortium. Operis provided financial model audit services on behalf of the sponsors and the lenders.
