Deyalsingh: Money saved on hospital

Health Minister Terrence Deyalsingh said Government was able to save a significant amount of taxpayers’ money and not sacrifice quality, in the construction of the new Point Fortin Hospital. Deyalsingh made the disclosure in the Senate on Tuesday as he slammed poor financial arrangements left in place for the project under the former People’s Partnership (PP) government.

The minister said construction of the hospital is 42 percent complete and work is ongoing. However he said under the PP, a contractor was mobilised for this project, without “executing a government to government agreement and without finalising the financing arrangement for the hospital” with the Austrian government.

Deyalsingh said when the People’s National Movement (PNM) assumed office in September 2015, “there was no source of funds for this project.” He said this resulted in the project being financed from the Consolidated Fund, “from general revenues while this conundrum was being sorted out.”

Deyalsingh said this was why the hospital’s construction experienced a delay. Saying the hospital should be finished between the first and second quarter of 2019, Deyalsingh said the new 100-bed facility will cost $1.5 billion VAT (Value Added Tax) inclusive. He said it is instructive the PNM was able to negotiate with the Urban Development Corporation of TT (Udecott), a reduction in its project management fees on the hospital by $300 million.

“One has to ask, where was that money supposed to go under the last administration?” Deyalsingh remarked. Government senators thumped their desks as he declared, “We saved this country $300 million without touching one square foot of space.” He continued, “We also saved this country $200 million by re-negotiating with Udecott for the Arima Hospital to bring down their project management fees.” Deyalsingh opined that the PNM was able to save taxpayers approximately half a billion dollars in project management fees alone, on both hospitals, through prudent financial management.