Parliament approves 17 million kr. budget for Kerit building purchase in Tórshavn

The Ministry of Finance prefers to purchase rather than lease the building intended for the Health Department. The Finance Committee raised questions about the rationale behind the government’s funding for the acquisition, given that it currently leases properties for similar institutions.

The national parliament has approved a budget of 17 million kr. for the purchase, which concerns the Kerit building, located at Varðagøta in Tórshavn. The acquisition price for the property is set at 12 million kr., alongside an additional 5 million kr. earmarked for essential renovations.

Constructing a new treatment facility for the Health Department is projected to cost between 50 and 60 million kr. The current facility in Velbastaður is no longer deemed suitable. Consequently, the Health Department is operating under a provisional approval as a treatment center.

According to the regulations governing the Health Department, the national treasury will receive proceeds from the sale of the Velbastaður property. Funding for the acquisition of the Kerit building is included in a supplementary budget, which is up for its third reading in parliament today.