Latest update December 22nd, 2024 1:56 AM
Govt. to use $3B in supplementary funds to pay advance on New Amsterdam Hospital project
Kaieteur News – With $3.6 billion approved for the health sector in the supplementary budget, approximately $3.332 billion will be used to pay the advance the government is obligated to pay to the contractor undertaking works on the New Amsterdam Hospital.
Minister of Health, Frank Anthony
This is according to Minister of Health, Dr. Frank Anthony who made the revelation on Tuesday while responding to questions posed by Opposition Member, Dr. Karen Cummings at the 70th Sitting of the National Assembly.
In his explanation, the minister mentioned that the government’s obligation is that they have to advance 10 percent of the contract sum to the contractor on the project.
“So the $3 billion that we are requesting is for a very specific project and that is we have recently signed a contract with VAMED (contractor) to build a new, New Amsterdam Hospital and as per contract the government’s obligation is that we have to advance 10 percent to the company and this $3 billion dollar reflects that 10 percent that could be advanced to the company,” he said.
The minister added that part of the $3.6 billion requested, some $16 million will go towards the supervision services for the hospital project.
He mentioned that the new hospital will be located in the compound of the Psychiatric Hospital. “We have already started work on the site so we have level the ground, and we have handed the site over to VAMED. So we expect that construction would start early in the new year,” the minister stated.
This publication had reported that the hospital will be built by VAMED Engineering, an Austrian company. The company has been also contracted by government to build the $31.9 billion (EUR$149 million) Paediatric and Maternal Hospital.
In September, Dr. Anthony indicated that the signing of the contract for the construction of the hospital was completed although he did not state the cost. Kaieteur News subsequently learnt that the contract is valued at US$161M.
“This [hospital] would be at the same level like the paediatric one we are developing and this would have approximately 220 beds, with five operating theaters and a cardiac suite as well.”
It would also have a section for psychiatric patients, and another section where health workers, doctors and nurses would be trained, he said.
The new facility will also be equipped with services and equipment that the current facility cannot provide.
The Governments of Guyana and Austria signed an agreement in 2018 for the development of a number of health facilities here, Minister Anthony disclosed in February.
“One of the facilities that were earmarked was the Georgetown Public Hospital. When we came into government, we reviewed the agreement and we decided at the time, we wanted to build a maternal and child health hospital…and we amended that agreement,” Dr. Anthony had said. There was no public tendering process employed in the selection of the contractor to construct the hospital.
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