Steno centre plan halted after costs rise to 95 million kroner

The planned Steno Centre will not be built on top of the C building at the National Hospital because the project has become too expensive, Kringvarp Føroya reports. Negotiations will now begin with Novo Nordisk to find a new location.

“It is far too expensive. It cannot be done,” said Per Busk, director of the Hospital Service.

Public works agency Landsverk estimated that the centre would cost 63 million kroner, an amount Novo Nordisk had pledged to fund. When tenders were received almost a year ago, the lowest bid was 67 million kroner.

However, several costs were not included in the tender. Once everything is taken into account, the total price is estimated at 95 million kroner, about 32 million kroner more than Novo Nordisk is willing to pay.

The planned centre would cover 1,200 square metres, putting the cost at more than 79,000 kroner per square metre.

Health and Energy Minister Eyðdis Hartmann Niclasen said on the radio last week that it would be necessary to consider whether politicians were willing to provide additional funding. Busk said negotiations with Novo Nordisk would begin with the approval of the Ministry of Health and Energy.

The centre is still expected to be located on the grounds of the National Hospital, but Busk would not say where. He expects Faroese politicians will also need to provide funding for the project.

There are currently five Steno centres in Denmark and one in Greenland. Novo Nordisk would like to fund a centre in the Faroe Islands. At present, the Steno Centre operates from only a small room at the National Hospital.

The centre is intended to improve the quality of life and life expectancy of people with diabetes, prevent diabetes and conduct research.