Finance Ministry secures €50m to reconstruct La General Hospital
The Finance Ministry has secured €50 million in local funding for the reconstruction of the La General Hospital.
This, according to the Minister of Health, Kwaku Agyemang-Manu follows a directive by President Akufo Addo to the ministers of Trade and Industry, Health and Finance to find alternative sources of funding to recommence the project at the 37th sitting of Cabinet.
He said this while presenting a statement on the floor of Parliament to apprise the House on the La General Hospital.
Mr Agyemang-Manu said the same civil works scope of the project would be executed at a reduced cost of €50 million instead of the initial cost of €68 million.
“At the 37th session of the cabinet, the president directed the Ministers of Trade and Industry, Health and Finance to find alternative sources of funding to recommence the project. Through the efforts of the three-man committee, the Minister of Finance has now identified funds locally to continue the project with the same simple work scope but a reviewed price of 50 million Euro,” he said.
He added that processes were underway to ensure payment of the contractor and that work would commence in earnest soon.
“The contractors have resubmitted the advance mobilisation guarantee to the Ministry of Health which has been processed to the Ministry of Finance for payment,” he said.
Mr Agyeman-Manu said “The project consultants and the ministry’s technical team have met with the contractors to draw up a roadmap for the continuation of the project once the funds are received.
“The contractor indicates that once the funds hit their accounts they will remobilize to site within a week
“At this point, all parties to the contract have shown a clear willingness and commitment to work and we trust that this project will be carried out in earnest and completed within the 24-month duration as originally envisaged,” he said.
However, the Minority in Parliament criticised the Minister for failing to provide clear timelines on when work will resume on the project.
The Ranking Member on the Health Committee of Parliament, Kwabena Mintah Akandoh dismissed the Health Minister’s claim, labelling it as deceptive, given the track record of unmet assurances.
The La General Hospital was demolised in July 2020 due to severe structural problems reported by the hospital’s administration.
Although President Akufo-Addo cut the sod for the La General Hospital Redevelopment Project on August 10, 2020, work on the project is yet to commence.