Georgetown: The Government of Guyana (GOG) and Fedders Lloyd signed a Memorandum of Understanding (MOU) on this week that will see the construction of the proposed Specialty Hospital restarting soon, according to a statement from the Ministry of Finance, as part of the MOU with the GOG, Fedders Lloyd will review the works already started on the Specialty Hospital; conclude a design of the Hospital that is acceptable to the GOG; and commit to fully equipping the facility on completion of its construction. The Indian company will commence work immediately after the signing of the MOU.
Work on the Specialty Hospital was halted after allegations of impropriety and fraud were leveled against the contractor, Surendra Engineering Company, who won the bid for its construction in 2012.
The former People’s Progressive Party (PPP) administration had terminated the contract, and moved to the court to seek redress. It was successful, as the court ruled in its favour and the future of the Line of Credit (LOC) was threatened.
“Following the APNU+AFC government’s accession to office, it reviewed the project, and concluded that since there was no existing contract that could be enforced, it was impractical to continue to keep the LOC in its existing form, especially since it was attracting commitment fees,” the Finance Ministry said in its statement yesterday.
Government, recognising the need to have the LOC for the Specialty Hospital re-examined, requested that the EXIM Bank of India cancel the LOC for the Specialty Hospital and reallocate the balance of funds to a project aimed at modernizing three Primary Healthcare Facilities.
However, the Government of India (GOI), in its response, while indicating its no objection and support for the modernisation of Primary Healthcare Facilities suggested that GOG should consider salvaging the Specialty Hospital, as it will complement primary healthcare facilities here.
“GOG, having examined the merits of the proposal, began searching for a willing partner to complete the Specialty Hospital, using the remainder of the LOC,” the statement added.
Taking the suggestion of the Indian government into consideration, the GOG approached Fedders Lloyd- one of the original bidders- to explore the possibility of them completing the project.
“Fedders Lloyd expressed continued interest and was prepared to complete and fully equip the facility,” a joint press statement said.
Minister of Finance Winston Jordan in brief remarks said, “The signing of the MOU represents a tangible expression of Fedders Lloyd interest and commitment to move the project forward.”
He added, “The MOU is also testament to Government’s commitment to advancing health care delivery in Guyana.”
Jordan emphasised the approval given by the Government of India’s for an additional LOC for the upgrade and modernizing of Suddie and Bartica hospitals and the West Demerara Regional Hospital.
Ajay Jha signed on behalf of Fedders Lloyd, and thanked the GOG for the opportunity to work on the project and more specifically, the opportunity to work in Guyana.
“The Specialty hospital will be a model not only for Guyana but the rest of the Caribbean,” said Jha.
The Specialty Hospital is intended to cater for high risk surgeries and other health care demands. While in opposition, the now administration had voted against the use of funds for the project. They had cited several concerns.
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