The Hradec Králové Region will take out a loan of up to CZK 1.2 billion for investments in hospitals and a home for the elderly. The loan to the region will be provided by Česká spořitelna. The region will finance the planned construction of new pavilions in hospitals in Jičín, Náchod and Rychnov nad Kněžnou and the expansion of a home for the elderly in Hradec Králové. Yesterday, all 43 present regional representatives approved the acceptance of the loan.
According to Deputy Chief of Finance Rudolf Cogan (STAN), the planned four key investments in hospitals and a home for the elderly will cost “well over two billion crowns”. According to him, the money from the loan will go exclusively to investments, as the region is able to cover operating expenses without any problems.
According to Cogan, the region should also invest as it manages to reduce prices in competitions. He proved this with the currently competing contract for the construction of a pavilion for laboratories and oncology in the Jičín hospital. “We saved CZK 154 million in the Jičín hospital. The design price was CZK 474 million. We also compete for good prices on roads,” said Cogan.
Representatives and deputies Ivan Adamec (ODS) and Jan Birke (CSSD) expressed concern in the discussion whether the region will continue to see favorable prices for rising construction work in the future. According to Adamec, tenders are starting to appear that companies do not fill at all. He estimated that a price fluctuation of 20 to 30 percent could be expected. According to Birke, companies are not able to build a contract now at the prices offered in the competition in January.
For the modernization and completion of the regional hospital in Rychnov nad Kněžnou, the region expects costs of almost CZK 900 million. In the past, the state has promised to contribute CZK 300 million to the investment. The region is also preparing a project for the second stage of the construction of the Náchod Hospital for about CZK 580 million. It consists of the demolition and subsequent construction of Pavilion E and the reconstruction of Pavilion D.
The region approached four banks to provide the loan. The decisive criteria were the interest offered and the fees associated with credit management. Drawing on the loan will be at the will of the region. The region will be able to repay the loan at any time if there is a more advantageous offer on the market. The region will also be able to convert the loan from the lending bank to a fixed rate; now the rate is linked to the interbank Pribor rate.
At the end of 2019, the region was completely debt-free. Last year, it used a loan of CZK 631 million to finance investments, namely the construction of the Náchod hospital.
Source: CTK
