What happens when financial systems are adapted to serve society at the local level? The Dolfins project has had the opportunity to explore this question through the work of its partner, PlusValue, who have taken the standard model of Public-Private Partnership (PPP) for an urban regeneration project in Italy and added a social twist.

PPP with a Twist: Ospedal Grando Treviso

The public health infrastructure in Italy is facing pressure to serve more people with fewer resources. In response, the city of Treviso has developed an innovative PPP to build and operate a new 990-bed hospital with a total investment of €250 million. In order to embed social impact in the development of the hospital, the developer leading the consortium to build the hospital — LendLease — has partnered with PlusValue, a research and consultancy venture specialising in social impact strategy, to secure an innovative financing model.

The model allows them to set up an investment fund connected with the financing of the hospital to invest in new businesses and services to increase the positive impact of the hospital in the community. This pilot approach realises the new emphasis put on social impact by the Juncker Investment Package and new European regulation on public procurement.

Added Value for Local Communities

PlusValue’s integrated impact investing strategy will 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.

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