Price tag for new Ministry of Health HQ moves from $744M to $818M

Feb 03, 2023 News

Kaieteur News – The Committee of Supply on Thursday approved some $79 million more to facilitate the completion of the new Ministry of Health Headquarters, moving the bill for the building from $744M to $818 million.

During day four of the consideration of the estimates of the 2023 Budget, it was disclosed that from the $79 million approved, $74 million will go towards the contractor while some $5.2 million will be for the supervising firm.

This is according to Minister of Health, Dr. Frank Anthony who explained that “There is $74 million that has been allocated for the completion of the ministry’s head office and we know the history of that. The consultancy since we have extended the construction time for the building, we have to also extend the supervisory contractor’s time, and so there are some monies that are catering for that. So we have there $74.1 million for the construction and we have $5.2 million for the supervisory contract.”

The new Ministry of Health Head Office which is being constructed.

As reported the construction of this building has been ongoing from some years, in fact the initial contract which worth $365 million would have been signed under the previous government, followed by a new one under the current government which is worth $436 million. It was noted in parliament that works on building are some 90 percent completed and the project is set to be completed within this month. Kaieteur News had reported on Thursday that the Government has commenced legal proceedings against Chung’s Global Enterprise, in relation to substandard work on the Health Ministry’s Headquarters located on Brickdam, Georgetown.

Minister Anthony made the disclosure on Tuesday while responding to questions by Opposition Member of Parliament, Jermaine Figueira, in relation to the termination of said contract by the government on October 31, 2020. Dr. Anthony said the original cost of the project was $365 million. It was intended to be completed in 12 months and the contractor received an advance payment of $71.2 million in November that year, which represented some 20 percent of the contract sum.

“At the end of 2019, the contractor received $304.5 million or about 85 percent of the contract sum, and payments were made without valuation of six payment certificates, which totaled about $233.1 million, there was no valuation certificate, and works remained incomplete,” the health minister pointed out.

He added that among some of the works to be completed were the ceiling works, painting of the internal and external walls, electrical and AC unit installations, installation the lifts, tiling works, plumbing works and additional furnishing.

He noted that in 2019, the Auditor General recommended that the head of budget agency take immediate actions to activate the stipulations of the contract including termination of the contract and recovery of the sums paid.

With the decision being made to terminate the contract – it was estimated that for the work to be completed, the contract had to be increased to about $870 million. This represented an additional $513.3 million to be added to the $304.5 million that was already paid. When the performance bond was checked, it was already expired one year prior. It was reported that the current administration took office in August 2020 and terminated the contract soon after and a new contract was awarded to the tune of $436 million to complete the work. During last year’s budget, the house had approved an additional $272 million to complete the building while some $13 million was approved for the supervising firm. It is unclear who the new contractor for the project is.

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Committee of Supply, Dr. Frank Anthony, Jermaine Figueira, Minister of Health, Opposition Member of Parliament

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