“Specialty Hospital delayed due to World Bank disapproving funds”– Minister of State Harmon
Georgetown, GINA, June 17, 2016
Minister of State Joseph Harmon explained today that the Specialty Hospital’s construction has been put on hold. Addressing the media at the Post Cabinet briefing at the Ministry of the Presidency, Minster Harmon said that the financing of the project has been halted due to India’s decision to sever ties with Fedders LLoyd.
The Minister further explained that “due to its procurement policy” the previously contracted company has been barred by the World Bank., “until 2020” It was revealed that this decision was communicated to Government via the Indian High Commission. India has since indicated its preference for a new contractor from that country to execute the project. The Minister of State added that, hospital’s construction has been “put on hold to allow for fresh tendering to select an Indian contracting firm that is prepared to complete the project for the balance remaining”.
Minister Harmon said that Government is yet to make a final decision. This he stated is due to the length of time it takes to advertise for a contractor, taking into account, “inflation, interest and fees for the US$13.8 million line of credit from India”. The Ministers of Foreign Affairs, Finance, and Public Health are to seek answers from India before “a definitive course of action” is taken on the future of the planned Specialty Hospital.
The Government had selected the Fedders Lloyd Contracting Company, after it was discovered that Surendra Engineering, previously selected by the former administration, was found to be conducting fraudulent activities and performing poorly. The Specialty Hospital which will offer specialized services and medical procedures that are currently available overseas at very high prices is to be constructed at Liliendaal, East Coast Demerara.