Latest update March 24th, 2025 7:05 AM
US$5M Ocean View Hospital cost jumps to US$8M
– media not invited to commissioning
De facto President, David Granger, and de facto Minister of Public Health, Volda Lawrence, yesterday commissioned the Ocean View COVID-19 Hospital where it was revealed that the cost to construct the facility jumped from US$5M (G$1B) to a whopping US$8M (G$1.6B).
The Ocean View COVID-19 Hospital
Private media entities, including Stabroek News, Newsroom and Kaieteur News were not offered an invitation to the event. However, this publication, upon learning of the commissioning plans, decided to send a representative to seek answers to several burning questions regarding the facility. Among the questions was the acquisition cost of the land; how the billion-dollar contract was awarded; where government would source the funds needed and whether the contractors were paid in full.
After the formal proceedings, President Granger was asked to respond to concerns about the magnitude of the expenditure for the sanatorium. To this, the President said, “Nothing has been done outside of the law.”
Granger added that “This matter was thoroughly ventilated at Cabinet.”
It is unclear when this matter would have been dealt with at the level of Cabinet.
It was de facto Finance Minister, Winston Jordan, who back in April made it known that the APNU+AFC government would have to find in excess
President David Granger and Public Health Minister, Volda Lawrence unveiling the plague
of G$1 billion to transform the old Ocean View hotel at Liliendaal, East Coast Demerara into a state-of-the-art facility for the incubation, isolation and quarantine of COVID-19 patients.
That cost, however, did not include a possible purchase price.
The President in his reply could not provide that detail but stated that the previous owners were “heavily indebted” to the bank.
“My understanding,” he continued, “is that it’s in receivership.”
“So in financial terms, we don’t have a bottom-line but the Minister of Public Health and the Minister of Finance are quite aware of the level of expenditure and Cabinet is convinced that the expenditure is justified given the health situation,” the President said.
Lawrence was also asked pointed questions on the cost of the land and, in reply, she stated “We haven’t had any transfer or anything like that; all of those matters are in the Ministry of Legal Affairs.”
“I know that the Ministry spoke to Mr. Jacob Rambarran,” Lawrence said, “and I know that since his consent to help us in the situation to use the place and so on, that has now transferred to the Ministry of Legal Affairs and they are the ones who are talking with the receiver and Mr.
President Granger speaking to the media
Rambarran and making all the necessary arrangements.”
Asked whether the building is owned by the government, Lawrence said “you’ll have to ask the Ministry of Legal Affairs. I don’t want to assume anything to you. I want you to go where the persons are dealing with the issue and get the information from them.”
The Coalition, under the Acquisition of Lands for Public Purpose Act, acquired the Ocean View Hotel property through a compulsory order. The order dated April 29 was signed by Minister of State, Dawn Hastings-Williams.
“This notice is made pursuant to paragraph (2)(a) of the Direction by the President under the Public Health Ordinance, Cap.145, and published in the Gazette, Legal Supplement- B, 16TH March 2020,” the Order stated. Neither the cost for the acquisition of the building, nor the land, was stated in the order.
Kaieteur News had reported on the document that spelt out government’s rental agreement with the receiver, Courtney Perry, entered into on April 1. Those documents outlined that the Coalition would have to pay G$13M every month to lease the land.
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