Controversial $300M Hydroclave system…GPHC distances self from purchase

Apr 19, 2012 News

– Actual cost still unclear

The Georgetown Public Hospital Corporation (GPHC) has distanced itself from the purchasing

Keith Burrowes

of the US$1.5 million ($300M) waste processing system and waste disposal truck.
Yesterday, GPHC in a statement said that it did not handle the purchase. Instead, this was done by an arm of the Ministry of Health – the Health Sector Development Unit, which is headed by Keith Burrowes.
The World Bank had made a grant of US$1.2M ($240M) available for the project.
GPHC disclosed that Johs. Gram-Hanssen A/S’s, a Danish company involved in procurement, was awarded the contract for the truck and complete hydroclave system. The bid by the company was US$949,579, which left an unexplained sum of US$250,421 from the total which Keith Burrowes had disclosed last week to Kaieteur News.
The tenders for the project were sent directly to the National Procurement and Tender Administration Board. They were evaluated and, in this particular case, the award of the project was approved by Cabinet and the World Bank, GPHC said.
Contrary to what Keith Burrowes had stated, GPHC insisted yesterday that the Invitation for Bids was advertised locally. Burrowes had told this newspaper that the project was not advertised locally since the equipment is not available locally. Rather, it was advertised internationally,

The Hydroclave system at the GPHC.

including in the highly-rated UK magazine, The Economist.
Burrowes, who has overall responsibility for the project, said that the World Bank had provided US$1M to purchase the system, but US$200,000 more was added to that amount by the time tenders began coming in for the project.
GPHC disclosed, yesterday, that initially, seven potential bidders purchased documents. However, only two of the seven companies responded – Johs Gram-Hanssen A/S, and SEEN Environment – Export Division.
The initial contract was split between Johs Grams and SEEN Environment, based on recommendations.
SEEN Environment’s part contract was to procure a compactor for US$33,783.35 and the truck for US$129,059 – a total of US $162,842.35 while Johs Grams, on the other part, was to procure a steam autoclave, estimated at US$639,042, a shredder for US$103,223 and training costing US$7,500, totalling US$749,765.
GPHC said yesterday that the contractual obligation with SEEN Environment was terminated due to the long delay in signing the contract.
According to GPHC, recommendations were made to award the entire contract to Johs Grams.
GPHC insisted yesterday that it was a World Bank HIV/AIDS Project, and as such, approval was given by that entity to proceed.
During a tour of the facility, Kaieteur News was told that to accommodate the installation of the hydroclave system, Government had to construct a shed; an air-conditioned waste holding room; electrical works; a gantry to run a steam pipe; and a hot water system, to the tune of $25M.
GPHC had said it spent a further $60M of its own money to construct the facilities to house the hydroclave system, training and a one-time airfare for a consultant from Hydroclave Canada.
Over the weekend, a quotation supplied to Kaieteur News by Hydroclave Systems Corp., Canada, revealed that the total cost for the exact model Hydroclave H-150 System is Cdn $761,911.74 (US$759,216.85). The quotation (seen below) was supplied to this newspaper upon request.