Estonia to seek €280 million from European Commission for Tallinn Hospital

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A rendition of Tallinn Hospital. Source: Tallinn City Government

Minister of Finance Keit Pentus-Rosimannus (Reform) said Estonia is planning to seek €280 million in funding from the European recovery and resilience facility for the construction of Tallinn Hospital. The state previously hoped to receive altogether €380 million from the Commission.

Pentus-Rosimannus said at the government's press conference on Thursday that the government had discussed changing its application at the Cabinet meeting on Thursday morning.

"This first and foremost concerns Tallinn Hospital with regard to which we will file a new application with the Commission in which we will seek €280 million from the recovery instrument," the finance minister said.

Pentus-Rosimannus added that negotiations with the European Commission are ongoing.

"As the entire recovery instrument will be approved as a single package, our wish and hope is to get some clarity with regard to the issue concerning Tallinn Hospital as quickly as possible so that we can make financing decisions and that the funds should indeed reach our economy," she said.

Mayor of Tallinn Mihhail Kõlvart said last week that the resources to be allocated from the European recovery facility for Tallinn Hospital will be smaller than the initially hoped sum of €380 million.

Kolvart said that the total value will be reduced, which means that the volume of each individual project will likewise be reduced proportionately. Such a large amount of funding for a project is not compatible with the rules established by the European Commission, either, he added.

The estimated total cost of Tallinn Hospital amounts to €520 million with VAT. The cost of planning, design and construction will make up €450 million of the sum and investments in devices €70 million. The gross area of the planned hospital totals around 127,000 square meters.

The social welfare and health care department of the City of Tallinn halted the international procurement for the Tallinn Hospital design at the start of April to prevent a risk of conflict of interests in the project team. The procurement was relaunched by the city last week.

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Editor: Helen Wright

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