Minister of Health, Kwaku Agyeman-Manu, has stated that the Finance Minister has found local funding of €50 million to continue the La Hospital project thanks to the work of a three-member committee.
He said the project would be done within the same civil works scope despite the reduced price of €50 million from €63 million loan approved by Parliament on April 3, 2020.
The contract agreement was between the Government of Ghana and Poly Changda Overseas Engineering Company Limited of China for the rehabilitation and equipping of the La General Hospital in Accra.
Following the submission of the advance payment request to the Ministry of Finance to be paid by Standard Chartered Bank (the lead arranger), it came to light that Credit Suisse, one of the syndicated banks, had gone under liquidation and could no longer be a party to the financing team.
The Health Minister told Parliament yesterday that this compelled Standard Chartered Bank to find a replacement, but the process could not be completed before the government’s debt restructuring process started.
“As you may recall, the debt restructuring has led to a suspension on all externally funded projects covered by loans,” Mr. Agyeman-Manu explained.
According to him, the contractors have resubmitted the advance mobilisation guarantee to the Ministry of Health which has been processed to the Ministry of Finance for payment.
“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,” he stated.
“The contractors indicate that once the funds hit their accounts they will remobilise to site within a week,” the minister revealed.
Mr. Agyeman-Manu said all parties to the contract have shown a clear willingness and commitment to work, adding, “and we trust that this project will be carried out in earnest and completed within the 24-month duration as originally envisaged.”
Minority
However, the Minority members were not enthused about the statement of the minister, and described it as disappointing.
NDC MP for Tamale South, Haruna Iddrisu, said the assurances given for the La Hospital project’s continuation was lame.
“His statement failed to inspire hope and confidence in the people of La that the government means well when it pledged and promised them a hospital,” he stated.
According to him, it is only in Ghana that harm and hurt of a demolished hospital caused to residents are not quantified.
“The Honourable Minister for Health, yours is not to come and state the problems and share with us a video of statements and problems. Yours is to share with this House a solution and a roadmap that gives assurance to the people of La that you mean well,” Mr. Iddrisu asserted.
By Ernest Kofi Adu, Parliament House