East Lisbon Hospital Moves Ahead as Government Releases Funds

28 November 2017

The Portuguese prime minister, António Costa, gave the green light to release funds for the construction of the East Lisbon Hospital, according to a resolution of the Council of Ministers published this Tuesday in Diário da República. The government considers the project an “essential initiative” for the efficiency of the hospital network.

The Maternity Hospital Alfredo da Costa

The government published the international public tender for the construction of the new hospital on Monday. Tuesday’s document states that the Council of Ministers authorised any expenditures inherent to the development of the hospital unit that will be installed in the parish of Marvila, and that it should be ready in 2023. The new facility will replace the hospitals of São José, Capuchos, Santa Marta, Curry Cabral, Dona Estefânia and the maternity hospital Alfredo da Costa.

According to the government, “the need to reorganise the healthcare network in the city of Lisbon and, in this context, to build a new hospital infrastructure had already been identified as a priority over a decade ago.”

“The HLO [East Lisbon Hospital] is an essential initiative to achieve rational and efficient gains in the performance and functioning of the city of Lisbon’s hospital network and, in the medium term, will generate important benefits for the covered populations by a modernisation of the provision of healthcare,” the document stated.

The Council of Ministers then decided to “authorise the release of funds necessary to the execution of the management contract for the design, construction, financing, maintenance and operation of the East Lisbon Hospital, in a public-private partnership with a maximum cost of 415,110,130 euros, spread over 27 years, scheduled to start in 2023, plus VAT at the statutory rate in force.”

Expenditure charges, according to the Portuguese government, cannot exceed the limit of 15,374,449 euros per annum from 2023 to 2049. According to the publication, measures should also be taken to take advantage of any usable equipment available at the six units whose operations will be replaced by the new hospital.

The Council of Ministers further determined that priority should be given to applying for European funds to purchase the new equipment needed and to choose the most appropriate financing model for the remaining investment needs.

Original Story: Economia Online / Lusa

Translation: Richard Turner