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HOSPITAL PROJECTS ARE FOUR TIMES INFLATED – BAWUMIA

 Contracts for the construction of hospitals in Ghana are often inflated four times the original price, Vice President, Dr Mahamamudu Bawumia has disclosed.

Speaking at a Value for Money Conference in Accra, Dr Bawumia said the Akufo-Addo government is seeking to correct the unfortunate trend and deliver projects at their actual cost.

“A comparative analysis reveals that better quality hospitals are currently built at more cost-effective rates in places like India than in Ghana….Ghana constructs 60-80 bed district hospitals for $25 million, the African Development Bank constructed a 150-bed hospital in Accra a few years ago for GHC5.76 million or $1.3 million which was without equipment. Even if we have to equip this hospital for some $1 million or $2 million, the total cost will be some $3 million,” he said.

“So how come we are building 60-80 bed hospitals for $25 million, a this figure does not include the tax exemptions granted on equipment imported for the hospitals. So for one hospital that we are building, we could have built 6 hospitals in Ghana,” Bawumia added.

Dr Bawumia said the Akufo-Addo government has resolved to ensure that all of its investments in infrastructure yield maximum returns and resources will be judiciously used.

“It is in this respect that the government under the leadership of President Nana Alufo-Addo has committed to seeking the investment required for the construction of the roads, schools and hospitals and at the same time maximizing the efficiency of existing expenditure on these infrastructures to ensure value for money. It is estimate that on average we are paying significantly more on contract values and this is because of corruption,” he said.

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