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Gov’t, VAMED in arbitration over two stalled hospital projects – Ali

The hospital at De Kinderen


—touts workload at six new regional facilities

President Irfaan Ali yesterday confirmed that international arbitration has commenced over the terminated contracts for the delayed Paediatric and Maternal Hospital at Goedverwagting and the New Amsterdam Hospital complex.

Speaking at a rare press conference, Ali said both contracts were terminated on July 23 and proceedings before the International Chamber of Commerce (ICC) commenced on July 28 in keeping with their terms.

He provided no further information on the dispute, including the sums being claimed, the government’s defence or its plans for completing the two hospitals.

The confirmation came as the President reported what he described as substantial benefits from the six new regional hospitals at De Kinderen, Diamond, Lima, Enmore, Number 75 Village and Bath Settlement.

According to figures presented by Ali, the hospitals have collectively recorded more than 145,000 outpatient visits and 18,500 inpatient admissions since they were commissioned. Approximately 3,700 surgeries were performed and some 2,400 babies delivered.

The facilities also completed more than one million laboratory tests, 82,200 X-rays, 37,700 ultrasounds and 13,680 CT scans, he said.

Ali reported more than 101,000 attendances at specialist clinics covering surgery, gynaecology, dentistry, ophthalmology and ear, nose and throat services. Nearly 280,000 prescriptions were also filled.

The President did not state the precise reporting period covered by the figures or provide comparative data from the hospitals which the new facilities replaced.

Diamond recorded the highest inpatient and surgical workload, with 4,705 admissions, 967 surgeries and 4,797 CT scans, while Enmore registered the most outpatient visits, at 36,670, and the highest number of X-rays, at 21,131.

The Number 75 Village hospital completed more than 351,000 laboratory tests and Lima more than 289,000.

Ali said average waiting times across the six hospitals were approximately ten minutes for emergency care and 30 minutes for outpatient services. He asserted that these waiting times compared favourably with those at public hospitals internationally but supplied no supporting comparative study.

De Kinderen recorded 8,760 ultrasounds and 61,700 laboratory tests, while the Bath hospital provided 25,601 outpatient consultations, 58,755 laboratory tests and 11,024 X-rays.

“These investments have revolutionised healthcare in our country,” Ali said.

He acknowledged that there were challenges within the system but maintained that they were not at the scale portrayed by some critics. He commended the doctors, nurses and laboratory staff working at the facilities.

Updating the public on other hospital projects, Ali said the Moruca hospital was 46.5% completed, Kato 51.9%, Lethem 49.8% and West Demerara 21%. He described all four as being almost on target.

Formal construction of the Bartica Regional Hospital has not started, although its preliminary design is 95% completed, he said. Ali placed the contract value at $254 million.

Protracted

The arbitration involving the two larger projects follows a protracted dispute between the government and Austrian contractor VAMED Engineering GmbH.

The two design-and-build contracts were valued at a combined €299 million: €149 million for the Paediatric and Maternal Hospital and €150 million for the New Amsterdam Hospital campus.

The specialised maternal and paediatric facility was originally expected to be completed in 2024. Stabroek News reported in December 2025 that the project was more than a year behind schedule and that there was no visible construction activity during a visit to the site.

The 256-bed hospital was intended to serve as a Level Five national referral centre and provide neonatal intensive care, obstetrics, gynaecology, oncology and paediatric cardiac surgery, among other specialised services. It was financed through an export-credit facility backed by UK Export Finance.

In February, Health Minister Dr Frank Anthony attributed delays at both sites partly to changes in VAMED’s ownership and management. He said government engineers and company representatives were then working on revised plans and completion schedules, according to Stabroek News.

The proposed 230-bed New Amsterdam facility at Fort Canje was expected to include five operating theatres, cardiac-intervention services, intensive and neonatal care units, advanced diagnostic imaging, psychiatric services and a training centre.

The government maintained that VAMED had failed to meet milestones, adequately mobilise resources and sustain the pace required to complete the projects.

VAMED, however, accused the government of failing to pay for completed and certified work and allowing the export-credit arrangements supporting the maternal and paediatric hospital to expire.

Kiskadee Watch reported that VAMED placed its claims at €45.53 million, including at least €19.15 million which it said represented certified payments. The company also claimed that the government’s supervising engineer had assessed the state’s indebtedness at approximately €37.94 million.

The government rejected VAMED’s portrayal of those sums as undisputed liabilities, saying they remained subject to contractual valuation, set-off rights, certification procedures and the resolution of other outstanding issues.

VAMED also said its last payment was received in May 2025 and blamed the reduction in work at both sites on the government’s alleged non-payment. The government countered that payments were tied to measured and approved work and said it had given the contractor several opportunities to remedy its deficiencies.

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