US$686m hospitals project behind schedule
Motivated by the desire to improve upon the health needs of Ghanaians, the government engaged Euroget, an Egyptian project management and financial group, to deliver nine hospitals nationwide, at a cost of US$686 million.
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In April 2008, EDI signed a memorandum of understanding with Ghana represented by the Ministry of Health (MOH) and the Ministry of Defence to design, engineer, construct and equip nine hospitals with a total capacity of 1,310 beds.
The projects comprise one military hospital in Kumasi, one regional hospital in Wa and another one in Kumasi and district hospitals for Salaga, Nsawkaw, Tepa, Konongo, Twifo Praso and Madina.
The flagship hospital projects, which commenced with a groundbreaking ceremony in Wa for a 160-bed capacity Upper West Regional Hospital, was done in 2010 by President John Dramani Mahama, then Vice-President, and was expected to be completed in 24 months.
A visit to the project site by Ghana News Agency (GNA) showed that the project had come to a halt.
Financial constraints and lack of materials accounted for the stoppage of work on the project, a former worker told the GNA on condition of anonymity.
The project area has been barricaded with roofing sheets, and the site secured.
In a related development, works on the first phase of the 60-bed Tepa District Hospital project would be completed, Mr Jonathan Tagbo, the Project Site Engineer, has disclosed.
“Greater percentage of civil works has been executed and we are left with the finishing touches,” he told GNA after a tour of the project site at Tepa in the Ahafo-North District to inspect the progress of work.
Works done so far include the construction of an administration block, staff housing units, outpatient department, pharmacy block, market and a security post.
Mr Tagbo said the coming days would see the contractors, EDI, commence electrical and plumbing works, roofing, internal plastering and external drainage system.
Actual works on the Tepa project, according to the contractors, began two years ago.
Mr David Brown, an Engineer of Euroget, told the GNA that with the first phase coming to an end, the contractors anticipated to work around the clock to complete the second phase in 2016, and subsequently hand over to the MOH.
Mr Khalid Hamed, an Official of Euroget, told the GNA that China Railways, a Chinese construction firm, has been sub-contracted to support construction works with the objective to finish the work as scheduled.
Mr Adu Gyamfi of the MOH told the GNA that he was satisfied with the progress of work so far done at Tepa and that the Ministry had stepped up efforts to get the projects to be completed on time to enhance healthcare delivery.
Financing the African PPP of the Year
Steven Gamble, Lead Partner at Norton Rose Fulbright, a global legal practice that provides the world’s pre-eminent corporations and financial institutions with a full business law service, described the Euroget De-Invest (EDI) and GoG (Government of Ghana) Hospitals project as “the African PPP (Public, Private, Partnership) of the Year.”
Norton Rose Fulbright advised Absa/Barclays Group in relation to Ghana’s US$686 million sovereign promissory note programme for the financing of the construction of seven civilian and military hospitals by Euroget De-Invest SA in Ghana.
The project involved back-to-back European and South African listings of the sovereign note issuance.
According the Euroget website, the construction and installation of medical equipment of all the hospitals are expected to be completed within 48 months.
As part of the project, Euroget engaged the services of a number of consultants and contractors to build these hospitals.
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Delays and concerns
Meanwhile, construction works are yet to start on the proposed regional hospital at Wa, which was supposed to have been given out on contract in 2014.
When GNA visited the project site at Sewua, for instance, the construction works had not started. However, Top International Ghana Limited, a construction firm sub-contracted, was on site, making preparations to commence work.
The Project Manager, Mr Liang Baoshang, told the GNA that all the designs, engineering and specifications had been completed.
“We have few outstanding issues to sort out with government, bordering on the release of funds,” he revealed.
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“Our equipment is all intact and we hope to start working on the project as soon as possible,” Mr Baoshang said.
When contacted, Ashanti Regional Director of Health, Dr Alexis Nang-Beifubah, declined to comment on the project, saying the MOH was in charge of affairs.
Some local residents who spoke to the GNA expressed worry at the seeming delay in completing the facility, urging the government to demonstrate its commitment to execute the project.
Mr Akwasi Agyemang-Osei, former Assembly Member for Prabon, one of the beneficiary communities, expressed worry about the delay in putting up the project, and appealed to the authorities to work assiduously to complete it on time.
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“We are always found wanting in times of emergencies. Government should, therefore, do what is expected of it to help alleviate the plight of the people,” he added.
Mixed stories from elsewhere
At Nsawkaw, the capital of Tain District in the Brong- Ahafo Region and a beneficiary of the Euroget project, the site engineer, referred to as Zaid, said he could not comment on the progress of work though workers were on site.
The project is being undertaken by David Walter Limited, general building contractors and civil engineers.
The Tain District Co-ordinating Director, Mr J. Adu-Koranteng, in an interview, said work on the project was progressing steadily.
At Salaga in the East Gonja District, the Engineers Regiment of the Ghana Armed Forces is preparing to complete the project.
The District Chief Executive, Mr Mohammed Aminu Lukumanu, told the GNA that the project would be completed in the next nine months.
He said the project was halted during the last Christmas festivities; upon enquires the contractor complained about the difficult terms of the project.
Works at Madina, Twifo Praso and Konongo hospitals are yet to commence.