Mr Speaker, from ourobservations and enquiries, we wereinformed that, out of the total amount ofmonies sourced for, £80 Million is what isgoing to be used for the constructionproper. The remaining amount was part ofthe financing of the Credit Facility itself. Mr Speaker, what we found was that,initially, about 340 beds were going to beconstructed. Out of this number offacilities. We asked for the definition ofwhat a district hospital or a hospital was,and so many other interventions weremade. It was finally agreed and theCommittee was assured that, the attentionof the contractor was drawn to thesedefinitions. Therefore, instead of a totalof 340 beds to be constructed out of thesefacilities, we are now going to get 430beds. Therefore, part of the number, whereasoriginally, the Sawla-Tuna-Kalba, Whetaand the Tolon facilities were going to beconstructed as 50-bed capacity hospitals,they are now going to be 80-bed capacityhospitals in tune with what the otherswere. It is only the Bamboi Polyclinic,which is a Polyclinic, therefore does notqualify to be a district hospital, whichwould be a 30-bed Polyclinic. Mr Speaker,that is why we have variation of 90 extrabeds from our deliberations. Mr Speaker, as I said earlier, thetechnical team explained that thefinancing agreement -- the total of£89,935,500 -- was going to be made upof the cost for the construction of £80million whereas the financing cost was the
extra £9, 935,500. We also asked for valuefor money and we were informed that thevalue for money audit was being followedby the crown agents. Mr Speaker, but the Committee, overthe time, had also been looking at valuefor the projects that are entrusted on usand we have come to the conclusion that,in addition to value for money, we believethat, we can assure ourselves of value andcompetitiveness, if we look for trendanalysis. That is the cost of projects overthe period done by particular contractors. Therefore, the Committee asked for atrend analysis for similar projects over theperiod of time and we were convinced thatwhen you look at the cost per unit floor,whereas in 2001, the cost per unit floor forsimilar projects done by this contractorcost US$2,857, in 2008, similar facilitiescost US$2,777. In 2012, facilities which areof similar range cost the nation US$2,801per unit floor and in 2013, some sevendistrict hospitals which were alsoconstructed nationwide costs the nationUS$2,808 per unit floors. Mr Speaker, for this particular project,based on the original that is 340-bed totalconstruction, we were going to get it atUS$2,666 per unit floor. This was quitecompetitive compared to the others butbecause of the increase we asked for; weare now going to have 430 beds. So, weexpect that, per unit floor is going to beeven much lower. So, Mr Speaker, we felt that, and thisshowed that, the cost per unit was goingdown with our looking into it, especially,looking at it from the trend analysis. Thiswas what convinced the Committee andtherefore, enabled the Committee to boldlydecide that this is a competitive projectand we therefore could call on the Houseto support it.
