Austria-based firm VAMED today announced it was taking the Guyana Government to arbitration in a dispute over two major projects: the Guyana Paediatric and Maternal Hospital, Georgetown and the New Amsterdam Hospital Campus.
This would be another major case of a dispute between the government and a contractor following one with the Gas to Energy contractor, Lindsayca/CH4.
A press release from VAMED follows:
Press Release of VAMED Engineering GmbH
VAMED to Commence International Arbitration Against the Government of Guyana Over Unpaid Hospital Contracts and Lapsed Export Credit Financing
GEORGETOWN, Guyana, July 16, 2026
VAMED Engineering GmbH, a leading international healthcare infrastructure provider headquartered in Vienna, today announced its intention to commence arbitration proceedings against the Government of the Cooperative Republic of Guyana, represented by the Ministry of Health, in connection with two major public healthcare infrastructure projects: the Guyana Pediatric and Maternal Hospital, Georgetown and the New Amsterdam Hospital Campus.
This decision follows extensive efforts by VAMED to resolve the matter amicably and constructively. Despite these efforts, the Government has failed to satisfy substantial payment obligations for works already completed and certified under the contracts.
The projects arise from two Design-and-Build Contracts entered into between the Ministry of Health and VAMED Engineering GmbH: the Guyana Pediatric and Maternal Hospital contract dated 8 June 2022, valued at EUR 149 million, and the New Amsterdam Hospital Campus contract dated 12 July 2023, valued at EUR 150 million. Together, these projects were intended to deliver critical healthcare infrastructure, including specialized maternal and pediatrichealthcare services in Georgetown and expanded access to high-quality healthcare in Region 6.
VAMED has carried out substantial work under both contracts, including design services, site preparation, piling works, structural construction, and associated civil and mechanical engineering activities.
VAMED’s total contractual claims, amounting to overdue
EUR 45.53 million
including certified payments of at least EUR 19.15 million, and variations, indexation, additional works, and other contractual entitlements.
The Government’s own Engineer has separately estimated the Government’s indebtedness to VAMED at approximately EUR 37.94 million.
These are not disputed or speculative claims. They arise from contractual mechanisms and Interim Payment Certificates issued under the contracts themselves.
Despite repeated attempts to reach a commercially reasonable solution, VAMED has now gone almost one year without receiving any payment, with the last payment having been made in May 2025.
A particularly serious concern is the collapse of the financing framework supporting the Georgetown hospital project. The project was financed through an Export Credit Facilitybacked by UK Export Finance (UKEF) and funded by UniCredit Bank Austria AG with the Government of Guyana acting as borrower. The underlying loan agreement expired in November 2025, and the associated export credit guarantee expired with it.
The Government failed to renew or extend the financing arrangements despite repeated communications from both UniCredit Bank Austria AG and UK Export Finance regarding the impending expiration and the need for renewal.
This raises an unavoidable question: Why would a government permit a critical export credit facility supporting one of its most important healthcare infrastructure projects to expire, thereby removing a key payment security mechanism for the contractor and jeopardizing the completion of the project itself?
In VAMED’s view, the failure to maintain the agreed financing structure, combined with the continued non-payment of certified amounts, has severely undermined the economic foundations of the projects and created a financial impasse for which the Government must be held accountable. Export credit financing is an essential component of risk management in international infrastructure projects, and the loss of that protection significantly increased the risks borne by VAMED.
At the same time, the Government issued Notices of Intention to Terminate both contracts on 2 June 2026, despite their substantial certified indebtedness to VAMED.
Any reduced project activity is a direct result of the Government’s failure to pay their certified outstanding indebtedness to VAMED. The purported termination of the contract by the Government was wholly misconceived and in breach of the terms of the agreements.
VAMED rejects any attempt to call performance bonds or guarantees while the Government itself remains in substantial default of its payment obligations.
The situation has also resulted in significant logistical consequences. Since the cessation of payments, project equipment has accumulated at the port, with dozens of containers remaining uncleared and continuing to incur storage charges despite the Government’s obligation to facilitate the clearance process.
VAMED was left with no alternative options but to commence arbitration proceedings after all avenues for a negotiated resolution had been exhausted. VAMED will proceed with formal arbitration before the International Chamber of Commerce (ICC). The company will seek, among other remedies, payment of all outstanding certified sums, recovery of additional contractual entitlements, interest on overdue amounts, protection against wrongful calls on bonds and guarantees, and declarations and damages arising from any unlawful termination.
“VAMED did not choose arbitration lightly,” a company spokesperson stated. “For many months, VAMED sought a responsible and commercially reasonable solution that would protect these important hospital projects and serve the interests of the people of Guyana. However, the Government cannot continue to benefit from certified works while failing to meet its own payment obligations, allowing the underlying financing and export credit guarantee to lapse, failing to respond to repeated communications from financing institutions, and threatening termination and bond calls against a contractor that has already absorbed substantial unpaid project costs. VAMED cannot continue to finance the obligations of the Government of Guyana.”
VAMED remains committed to the rule of law, transparent dispute resolution, and the successful delivery of healthcare infrastructure where contractual obligations are honored.
The company emphasizes that these proceedings are not intended as an act of confrontation, but rather as a necessary step to restore a viable payment and financing framework, protect employees, suppliers, and financing partners, and facilitate the orderly completion of the projects.
VAMED stresses that its actions are guided by a fundamental commitment to the wellbeing for the people of Guyana. The company deeply regrets that ongoing contractual relationships have deteriorated to such an extent that the timely delivery of critical healthcare infrastructure—and, ultimately, healthcare services for the population—is now at risk. End
For information about VAMED go to: www.vamedwwh.com
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