Design and construction of an extension to Hraunvangur nursing home

Description

The Ministry of Social Affairs and Housing and The Government Property Agency (FSRE) intends to enter into a long-term lease agreement with Sjómannadagsráð concerning a new extension to the existing Hraunvangur nursing home in Hafnarfjörður, Iceland. The planned project consists of the design and construction of a new wing/extension to the existing nursing home at Hraunvangur 7, Hafnarfjörður, providing up to 125 nursing home places. The extension is expected to be up to approximately 9,500 m² and will be constructed in accordance with the applicable local development plan for the site. Sjómannadagsráð holds the relevant rights to the site on the basis of a land lease agreement with the Municipality of Hafnarfjörður. The new extension will be physically connected to, and functionally integrated with, the existing Hraunvangur nursing home, which is operated by Hrafnista, an entity under Sjómannadagsráð. Sjómannadagsráð will be responsible for financing and carrying out the construction of the new extension. Following the publication of this voluntary ex ante transparency notice, and provided that no legal obstacles arise, the Ministry intends to negotiate and conclude a long-term lease agreement with Sjómannadagsráð for carrying out the construction of the new extension and the use of the new premises. The lease term is expected to be approximately 20–30 years. The rent will be determined on the basis of normal commercial considerations, taking into account the lease term, construction cost, maintenance and improvements, depreciation, financing cost and other fixed costs relating to the building. The execution of this project is subject to the Icelandic Parliament’s approval of the relevant appropriation in the state budget.