The public health infrastructure in many European cities is facing pressure to serve more people with fewer resources. Further, as the EU labour force shrinks, reliance on innovation to drive productivity growth has played an increasingly significant role. Addressing both of these issues with an innovative new approach to Public Private Partnership (PPP) is PlusValue’s work with Treviso Hospital.
With a total value of €250 million, the project is being developed by a consortium partnership Ospedal Grando srl, led by urban regeneration multinational Lendlease. The consortium also includes Siram, Bilfinger, and Tecnologie Sanitarie, who provide management and maintenance services.
The new hospital will add 990 beds to the community to relieve pressure on the current public health infrastructure.
PlusValue is providing Lendlease with a comprehensive, dynamic, and integrated impact investing strategy for the Treviso Hospital including:
- Designing an impact finance model for Treviso hospital
- Creating and managing the local social impact fund – the Ospedal Grando Impact Investing (OGII)
- Assessing the impact of the OGII
- PlusValue’s impact investing strategy has stimulated 2 commercial banks to reduce the cost of capital used for the project financing.
- These financial savings will be used to create a social impact fund – OGII – which can be directly re-invested into the local community in Treviso through loans, equity, and grants delivered within and through the hospital’s value chain.
- PlusValue will ensure that the different strands and services act in synergy to maximise impact achieved.
- PlusValue will conduct a comprehensive impact assessment to guide the consortium, asset managers, investments, and all key stakeholders towards maximising impact.
The aim is for PlusValue’s integrated impact investing strategy to use the financial savings generated by the Treviso hospital’s reduced cost of capital to stimulate further investment from all the stakeholders involved, with a multiplier effect and self-sustaining positive feedback loop – circular economy – that increases the overall value of the project, creates greater value for the community, and creates new business opportunities thanks to an enhanced public reputation in Treviso.
Ultimately, PlusValue endeavours to have the outcomes of the Treviso Hospital project act as a basis to transform the entire business model for financing social infrastructure through re-aligning public and private interests and, if successful, used to finance more social infrastructure (e.g. hospitals, schools, affordable housing) in Europe and worldwide.
21/03/2017 – policy paper by EIB and WEF, Beyond the Equity-Efficiency Trade-Off: Practical Ideas for Inclusive Growth and Competitiveness in Europe
26/07/2017 - press release by EIB, Juncker Plan: EIB finances better healthcare in the Veneto Region
Please contact Filippo.