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Speciality Hospital… Transparency Institute welcomes Govt. decision to reassess contract

Sep 15, 2012 News

Transparency Institute of Guyana Inc. (TIGI) says it welcomes the government’s decision to reassess the award of the US$18.1M contract awarded for the construction of the Specialty Hospital at Turkeyen. There were five bids and the contract went to Surrendra Engineering Corporation Ltd.
TIGI urged that the matter be resolved as quickly as possible and that in the interest of transparency and the public should be informed of the results.
“In the interest of accountability the public must ensure that it is getting value for money and that the project will be professionally executed and completed by those best qualified to do so,” TIGI noted.
The Transparency Institute further disclosed that media reports as well as a review of Surrendra’s website noted that the company has no experience in the construction of hospitals. For the purpose of bidding for the project, Fedders Lloyd Corporation Ltd., who bid lower, formed a consortium with NOUS Hospital Consultants, which has expertise in building specialized hospitals and has commissioned about 90 hospitals around the world.
Fedders also contended that there were irregularities in the bidding and evaluation process, especially as regards the extension of time for the submission of bids; numerous changes to the tender documents after invitations to bid were solicited; and the submission of a bank guarantee from an Indian bank to be confirmed by a local bank.
The Ministry disputed these charges and indicated that Fedders Lloyd was disqualified on “administrative grounds”. It is not clear what those grounds are.
“We recall the poor tendering decision to award a substantial contract to Synergy Holdings to build a road to Amaila. Synergy had no proven competence in building roads. As expected, that contract had to be terminated by the GOG because of the failure of Synergy to complete. With this in mind Transparency Guyana reasonably expects that the government and indeed all taxpayers would not wish such a re-occurrence which ultimately brings to bear a heavy burden on the people of Guyana.” TIGI emphasised.
In this regard, the Transparency Institute underscored that Guyana welcomes the Government’s decision to reassess the award of the contract in view of a protest being lodged with the Ministry of Health by Fedders Lloyd.
The hospital is being funded through 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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