Euroget De-Invest 9 hospitals project at various stages of completion
In 2007, Euroget De-Invest s.a (EDI) of Egypt, an Egyptian investment company, with special expertise in structuring and arranging project finance and investment initiatives, entered Ghana and prospected for social infrastructural projects, specifically hospitals.
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The project involved the construction of nine state-of-the-art fully functional hospitals including a 500-bed military hospital, two regional hospitals in Wa and Kumasi, and six district hospitals at Salaga, Twifo Praso, Madina (now at Atomic/Kwabenya), Konongo, Nsawkaw and Tepa. The nine hospitals involved the Ministries of Health (eight hospitals) and Defence (one military hospital in Kumasi)
Euroget De-Invest successfully went through the regulatory processes and duly procured the contract, after processing the same through the various ministries, Cabinet and Parliamentary approvals in 2008. Further, commercial and supplier credit agreements were signed in 2008.
The value for money (VFM) audit on the contract was conducted by Crown Agents of the United Kingdom (UK) and successfully concluded in 2009. Consequently, the Turnkey EPC contract for the nine hospitals amounting to US$519.00 million was finalised in 2010. The Turnkey EPC contract is being financed by a supplier’s credit facility, secured by promissory notes issued by the Ministry of Finance (MoF).
The supplier credit facility was arranged on concessional terms, providing sufficient financial savings for the Republic of Ghana. The supplier’s credit facility, signed between MoF and EDI contains the terms and conditions for the concessional funding.
The supplier credit facility and its terms and conditions are being implemented, monitored and available at the MoF. All payments under the contract are made in accordance with the agreed terms of the Supplier’s Credit agreement.
Subsequent to the VFM audit in 2009, the commercial contract with the Ministries of Health and Defence were finally concluded in 2010, pending various conditions precedent for effectiveness. Various pre-conditions for the effectiveness of the commercial contract and supplier’s credit agreement have been strenuously pursued.
These pre-conditions include; the issuance of agreed Promissory Notes in accordance with the agreement, which was obtained in February 2012 and legal opinion of the Attorney-General in April 2012, signifying full effectiveness of supplier credit facility. Other pre-conditions for commercial contract with the Ministries of Health and Defence included the release of lands and grant of access to sites for the hospitals, which were obtained on various dates, the last release being in 2014, and grant of final tax exemption by Parliament in December 2016.
The execution of the hospitals project, scheduled in two phases and commenced at different dates, are at various stages of completion. The expected commissioning dates for the nine hospitals are between July 2017 and April 2018, which are well within the contractual delivery period.
