THE Papua New Guinea Government has signed a US$159.6 million (about K495 milion) deal with the China Exim Bank for the Enga Provincial Hospital project in Enga.
Governor-General Grand Chief Sir Bob Dadae on behalf of the State signed a supplementary agreement to the principal contract for the construction of the hospital in Enga.
The provincial government had requested the appointment of the Department of Works and Implementation as the State’s representative. A report by the department found that a lack of leadership on the part of the State in enforcing the principal contract and project participants to meet their contractual obligations resulted in conflicts and extended delays in the construction of the hospital.
It was also noted that the Exim Bank of China, which is funding the project, was concerned about the delays. It even issued a notice to withdraw funding if the State did not resolve the matter immediately.
The Central Supply and Tenders Board in response resolved to revoke the provincial government and appointed Works Secretary David Wereh as the State’s representative for the principal contract effective from March 4, 2019.
Under the principal contract executed in April 2016, the contract value of the project was US$159, 600,000. It will be financed partly by the China Exim Bank (85 per cent) and the Government (15 per cent).
It will be Level Five referral hospital to provide clinical services of general medicine, psychiatry, gynecology, ENT/Head and neck surgery, ophthalmology, oral health including surgery, anesthetics, pathology, radiology and sexual health.
The contract was awarded to Guangdong Foreign Construction Co. Ltd.
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