EIB backs €120m upgrade of mental health facilities in Leuven and Kortenberg

Chief Executive Officer Dr Wim Tambeur said the EIB’s rigorous technical, financial and sustainability assessments reinforced confidence in the organisation’s long-term vision.

The European Investment Bank (EIB) has approved a €120 million loan to Z.org KU Leuven to support a major renewal of mental health infrastructure in Leuven and Kortenberg, marking a significant investment in the future of psychiatric and mental health care in the region.

The financing will enable Z.org KU Leuven to advance its long-term infrastructure programme, which aims to modernise facilities, improve care environments and support the ongoing transformation of mental health services across multiple campuses in Flanders.

The investment will accelerate several key projects, including the large-scale redevelopment of the Kortenberg psychiatric campus of the University Psychiatric Centre (UPC KU Leuven), the construction of a new psychiatric care home, PVT Andreas, in Lubbeek, and the development of a multidisciplinary urban care hub in the Welzijnstoren on the Hertogensite in Leuven. Z.org KU Leuven will occupy three of the ten floors in the Welzijnstoren, strengthening the integration of mental health care into the urban fabric.

Many of the existing facilities currently in use no longer meet modern standards for psychiatric care, creating an urgent need for comprehensive renewal. The redevelopment of the Kortenberg campus, which began in 2020, is now entering a full implementation phase with the backing of the EIB loan.

This financing marks the EIB’s second major investment within the broader KU Leuven healthcare ecosystem. An earlier phase supported the redevelopment of the Gasthuisberg campus, which is home to both UZ Leuven and Z.org KU Leuven, reinforcing the EIB’s long-standing partnership with the university and its medical institutions.

Z.org KU Leuven’s total infrastructure programme is valued at approximately €270 million and is scheduled to run between 2026 and 2040. The EIB’s €120 million contribution will provide long-term prefinancing for a substantial portion of this programme, helping ensure projects can proceed on schedule while public subsidies are released in stages.

EIB Vice-President Robert de Groot said the investment recognises the critical importance of mental health care, which is often under-resourced despite its wide-ranging impacts on individuals, communities and the economy.

“Mental health needs to be properly addressed with the right type of care and facilities,” he said. “We are pleased to support Z.org KU Leuven and KU Leuven in developing the Kortenberg site and other innovative infrastructure projects. These investments will strengthen public healthcare for the wider region, and the EIB looks forward to continuing its support for future developments.”

Koen Van Gerven, Chair of the Board of Z.org KU Leuven, said the financing goes far beyond individual construction projects and enables a system-wide renewal of mental health infrastructure.

“These investments matter because they improve what ultimately counts: the care we can offer to patients,” he said. “While the programme allows us to build at scale, every new facility is designed to remain human-scale, personal and supportive, creating environments where recovery and dignity can truly flourish.”

Chief Executive Officer Dr Wim Tambeur said the EIB’s rigorous technical, financial and sustainability assessments reinforced confidence in the organisation’s long-term vision.

“Meeting the EIB’s standards confirms the ambition and quality of our building programme,” he said. “These projects will help us deliver more tailored care across patient groups and support the broader transformation of mental health care in Flanders.”

Chief Financial and Infrastructure Officer Bart De Greef noted that the scale of the investment programme is unprecedented for the Flemish mental health sector and relies on a combination of government backing and external financing.

“Although Z.org KU Leuven is financially healthy, a programme of this size cannot be realised without strong support from the Flemish government and long-term prefinancing from partners like the EIB,” he said. “As public subsidies are paid in phases, this financing structure allows us to move forward with confidence once final approvals are secured.”

Beyond improving care delivery, the investments will also contribute to the long-term transformation of the campuses into an innovation ecosystem aligned with Flanders’ ambitions for its knowledge-based economy, developed in close collaboration with KU Leuven.