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Specialty hospital … Surendra Engineering awarded contract

Aug 23, 2012 News

– lowest bidder skipped

Fedders Lloyd Corporation Ltd of India, the lowest bidder for the contract to build the country’s specialty hospital, was passed over in favour of Surendra Engineering, in a bidding process that was dogged with uncertainty about what exactly is being constructed.
Cabinet Secretary Dr Roger Luncheon yesterday announced that Cabinet has offered its “no objection” to the award of the contract to the value of $18.1 million. He did not announce the name of the bidder, but that amount was put in by Surendra Engineering Corporation, which built the $12.8 million Enmore Packaging Plant, and which also has a US$4 million contract for the supply of 14 drainage pumps for use by the Ministry of Agriculture.
The lowest bid to construct the specialty hospital on Lower East Coast Demerara was put in by Fedders Lloyd, a US$500 million group in India.
The company put in a bid of US$23.2 million with a 23 per cent discount. That put its final bid cost at US$17.6 million. Fedders Lloyd put in its bid in association with Nous Hospital Consultants, an Indian company which specializes in health care projects.
In the bidding process, the Ministry of Health kept altering the original bid documents, making amendments several times. In fact, six days before the opening of bids, the Project Manager Naresh Mangar was still sending addenda to the original bid document.
Further, while the hospital is being touted as a specialty hospital, the requirements also changed to accommodate a primary health care centre.
And while the government has been touting that it wants to create a 150-bed hospital, in response to questions by Surendra, the Ministry of Health stated that bids would be evaluated “based on 100 beds.” The Ministry, in a response to Surendra seen by Kaieteur News, stated that “an expanded cost option of an additional 50 beds could be proposed by the bidders.
The hospital is being funded with a line of credit from India of US$18 million.
The government here intends to staff the hospital with specialists from India to do complicated surgeries, ranging from heart operations and organ transplants to cosmetic surgery.
Preliminary works have begun at Turkeyen, East Coast Demerara where the specialty hospital is intended to be built.
The announcement for construction was made in February 2011 by former President Bharrat Jagdeo when he returned from India after securing a US$18M line of credit.
Government had budgeted $150 million to commence the preparatory work. Cabinet awarded $97M to G. Bovell Construction Services in January 2012 to commence those works which included the construction of a fence, bridges and gateways.
The other bidders for the project were Shapoorji Pallonji & Company Ltd (US$42.4 M); Jaguar Overseas Ltd of India (US$18.6 million) and Vydehi Institute of Medical Science and Research Centre of India (US$19.5 M).

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