Vice president Dr. Mahamudu Bawumia yesterday made stunning revelations about how government contracts for the construction of hospitals, roads and schools in the country were outrageously inflated under the previous National Democratic Congress (NDC) administration.
Dr. Bawumia said some of the contracts had been inflated by about 600 per cent.
Speaking at the ‘Value for Money’ conference in Accra, the Vice President revealed that “At a recent meeting of the Economic Management Team (ETM), it emerged that Ghana constructs 60-80 bed district hospitals for $25 million and I said “Ebeii!”
He wondered how the African Development Bank could construct a 150-bed hospital in Accra for about GH5.76 million or $1million, the total cost cannot get to more than$3million.
“So how come we are building $25 million, a figure which even excludes the tax exemptions granted on equipment imported for the hospitals?” he asked rhetorically.
The Vice President noted that “for one hospital that Ghana is currently constructing, we could have built and equipped six hospitals.
“If Dangote can build a 1000-bed hospital for nearly under $20 million, it begs the question why Ghana builds an even smaller facility (about 400-beg) for nearly $300 million, something is not right here.”
In that regard, Dr. Bawumia said, “It’s therefore imperative that at the same time that we are seeking suitable investment opportunities to meet the infrastructure gap, the government must take steps to ensure cost efficient programme design and delivery to reduce financial wastage and protect the public purse.”
Meanwhile, The World Bank estimates that on the average Ghana invests approximately $12 billion per year in infrastructure projects.
The Africa Infrastructure Diagnostic Report in 2010 (ACID) also revealed that $1.1 billion is lost each year for the next 10 years.
It said for Ghana to meet its infrastructure deficit, $1.5 billion is required each year for the next 10 years.
H stressed the need for government to pay attention to the procurement processes, adding that current project costs are believed to be in excess of those accepted in the sub region and globally.
“For instance, a comparative analysis reveals that better and quality hospitals are currently being built at cost-effective rates in places like India than in Ghana,” he emphasized.
He said, “This government, under the leadership of His Excellency President Nana Addo Dankwah Akufo-Addo, has committed to seeking the investment required for the construction of roads, schools and hospitals while at the same time maximizing the efficiency of existing expenditure on this infrastructure to ensure value for money.”
Source: Daily Guide
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What African Development Bank built is what? How can we talk like we are unreasonable beings all because politics. The Vice President made a comparison between what African Development Bank built which is bigger than that of the NDC government so where did he lie here?
Bawumia is a ***barred word***-head who knows nothing but lies and character assassination,a hospital is not just bricks and morter if he cares to know.
Pls, Mr,Vice Prez, a hospital is not a building. It is a facility to derive health services and treatment from. The number of beds does not determine the quality of services the facility provides. It is erroneous to simply look at the number of bed of a facility to justify the cost. Have you considered the type of equipment and other things that the so called inflated hospitals are to provide. It is not merely putting up structures and calling hospitals. You argument is rather simplistic. Do due diligence before going public next time.
so because the "NDC" are kriminalls according to you, the hospitals built by them should not be open for public use ???? People die every day because of non availability of hospital beds yet when Bawumia became sick he was immediately flown to the UK for medical attention. NDC and NPP who cares for the people ?????????
Massa; why is Dr Bawumia surprised at such bloated hospital projects ; the truth is that the NDC as a governmenty did not come into power to help develop Ghana ;the fundamental ethos of the party is to still from Ghanaians ; most NDC politicians are fake politicians ; most NDC members are pen armed robbers and kriminally minded people ; look at Alex Segbefia a master thiff who with Carl Wilson started their kriminall minded activities from the ports at Tema stilling the cars and goods of people who have lived abroad fior years ; the same kriminally ayigbe minded thiff was the initial initiator of the woyome robbery of the GHC512 million ; the same Alxe Segbefia is involved in a number of contract deals in the building of these hospitals ; most of the these bloated hospital contracts should be referred to the Special Prosecutor for re-examination.