Tallinn mayor: EU funding for construction of Tallinn Hospital certain

Mihhail Kõlvart (Center).
Mihhail Kõlvart (Center). Source: Siim Lõvi /ERR

Mayor of Tallinn Mihhail Kõlvart (Center) said the city is making its decisions as if funding for the Tallinn Hospital project is already secured. He admitted, however, that the price of development might go up 30 percent by the time it reaches construction.

"The way we understood the message was that the funding meant for Tallinn Hospital is certain. I also understand that [Ursula] von der Leyen gave a positive assessment for the Tallinn Hospital project, that it truly is a necessary project," Kõlvart told ERR on Wednesday.

The mayor said the city is currently moving forward as if €280 million is already secured for the Tallinn Hospital mega-hospital project. He noted that the city's contribution will likely have to be higher than initially forecast.

"Our initial plan was to contribute €100 million. We currently see that this will likely grow. By the time it reaches the point of announcing a construction procurement, prices will have already grown 30 percent by some estimates," Kõlvart said.

The Tallinn mayor noted that he also expects a contribution from the state through the state budget. €140 million would have to be found for the development.

The current budget for the Tallinn Hospital project stands at €520 million, over half of which should come from the EU's recovery and resilience plan for COVID-19 recovery. The expected sum to be allocated for the project from the recovery fund is €280 million and Tallinn city government has promised to contribute €100 million.

Kõlvart also said finding a co-investor for Tallinn's Linnahall building would aid in finding funding for the Tallinn Hospital project.

The brutalist construction on the Tallinn harbor seaside has not seen much use since 2010, when the concert hall was closed. It was recently used for Christopher Nolan's "TeneT", but is largely used as a gathering site and not much else.

Kõlvart has said earlier that the building is a priority for the city after shipping line Tallink dumped a project to develop a port at the iconic site. The mayor noted that the search for a partner is ongoing.


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Editor: Kristjan Kallaste

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