Contractor to hand over military hospital project next year

The new military hospital in Kumasi under construction. Photo Vincent Dzatse

The new military hospital in Kumasi under construction. Photo Vincent Dzatse

Euoget De-Invest, the contractor of the 500-bed military hospital in Kumasi, has pledged to hand over the facility to government by April next year.

In addition to the military hospital project, the Egyptian firm is constructing eight other hospitals at a total cost of US$519 million.

The Country Manager of the firm, Prince Armah, told the media that all the facilities were progressing steadily and would be ready by April 2018.

He said the projects, which included two regional hospitals at Wa and Kumasi and six district hospitals at Salaga, Twifo Praso, Madina, Konongo, Nsawkaw and Tepa, would produce a total of 1,310 hospital beds when completed.

Giving a background to the award of the contract, he said in 2007, the company came to Ghana and went through all the regulatory processes, after which approval was given by cabinet and Parliament in 2008.

“The value for money audit on the contract was conducted by Crown Agents of the United Kingdom and was successfully concluded in 2010,” he said.

Mr Armah said the company offered a supplier credit facility arranged on concessional terms, by providing sufficient financial savings for the nation with certainty of payments to the sub-contractors and suppliers.

He said various pre-conditions to the effectiveness of the supplier’s credit agreement and commercial contract had been strenuously pursued.

Mr Armah indicated that some of the pre-conditions included the acceptable guarantee of payments by the Ministry of Finance in accordance with the agreement, first lead opinion of the Attorney General, and the Promissory Notes final issue.

He said other pre-conditions for commercial contracts with the Ministry of Health and Defence, which included the release of lands, and granting of access to site were effectively carried out in 2014 for the projects to kick-start.

Mr Armah reiterated that the company would ensure that all the projects were completed and handed over to the Ministries on schedule.

By Vincent Dzatse


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