The Latvian government has decided to allow the second phase of the A2 building project at Paula Stradiņš Clinical University Hospital to exceed 90% of its funding through advance and interim payments.
In a significant decision, the Latvian government has eased the financial restrictions on the A2 building project at Paula Stradiņš Clinical University Hospital (PSKUS). The new regulations permit the total of advance and interim payments for the project to exceed 90% of the funding allocated by the European Regional Development Fund (ERAF) and state co-financing. This amendment is crucial as it alleviates the financial burden that was previously placed on the hospital, which would have been required to secure an additional 10% pre-financing, roughly amounting to 11 million euros.
The need for this change arose due to the hospital's lack of available commercial resources or capital to manage unforeseen financial obligations. The Health Ministry of Latvia clarified that PSKUS operates as a non-profit entity reliant on state budget financing for its healthcare services, which limits its ability to self-fund required financial contributions. The government's action not only responds to the hospital's immediate financial constraints but also ensures the ongoing delivery of essential health services.
Importantly, the exceptional nature of this regulatory amendment is aimed at preventing unsubstantiated advantages and maintaining compliance with principles of equal treatment. It seeks to avert any risks of potential insolvency that could arise from the financial challenges facing the hospital, thus emphasizing the government's commitment to supporting vital health infrastructure in the face of budgetary constraints.
