Minority blocks €38M loan facility for construction of district hospitals

The Minority in Parliament has blocked the approval of a €38 million facility for the construction of five District Hospitals across the country.

Minority Leader, Haruna Iddrisu arrested the motion for the approval of the loan after the Second Deputy Speaker Andrew Asaimah had put the question to a vote.

According to him, Parliament lacks the required number to make a decision on the facility amid claims the Supreme Court of the land had defined quorum for such issues.

Deputy Finance Minister, Dr John Ampontuah Kumah, on Wednesday, March 15, 2022, filed a rescission motion for the House to rescind its earlier decision on the approval granted for the construction of the hospitals.

The approval of the original project which was given on Saturday, November 7, 2020, was to be executed by Messrs MZ Liberec.

However, in July 2021, the said contractor pulled out of the project thereby rendering the suppliers’ credit invalid leading to its termination.

Dr John Kumah in withdrawing the motion argued that the main contractor failed to provide performance security and advance payment guarantee for the project.

To ensure the execution of the projects for the benefit of communities in the catchment areas, the government of Ghana entered into another agreement with Deutsche Bank for a credit facility amounting to €38, 928, 898 to finance the project.

BACKGROUND

The increasing rate of population growth across the country has exerted enormous pressure on the existing health facilities, stretching them beyond their operational limits and thereby resulting in an increase in outpatient visits to the various hospitals in all the regions of Ghana.

However, programmes to address health infrastructure development, on the other hand, have not kept pace with the growing demand for health services as a result of increasing rate of population growth in the country.

In a bid to address the challenges, the Akufo-Addo led government entered into the agreement to finance the construction and equipping of three (3) 40-Bed District Hospitals at Ayensuano, Effiduase and Offinso, and the completion and equipping of the Old Tafo Maternity and Kumasi South Maternity Blocks.