Prime Minister Hon. Peter O’Neill said Cabinet endorsed the proposal by the Health Ministry and has given its approval for the hospital’s redevelopment by an Austrian Company called VAMED Group. The redevelopment of the Goroka Provincial Hospital includes the construction of a new diagnostic and surgical center, he said.
The Prime Minister said NEC also approved for utilization of the low interest Export Credit Facility loan offered by the Governments of Austria and Czech Republic for the construction of the new diagnostic and surgical center.
Prime Minister Hon. Peter O’Neill said the redevelopment of the hospital falls in line with the 2011-2020 National Health Plan key results Area 1, to improve service delivery within the health sector. “NEC also directs the Treasurer to enter into appropriate detailed loan negotiations for the project."
“Approval was also given for the use of K10 million in funds currently held in trust for Nonga Hospital to meet funding shortfalls for the project in 2018 with a view to replace the Nonga funds as part of the 2015 budget,” the Prime Minister said.
The Cabinet also directed the Minister for Health & HIV/AIDS to obtain a construction estimate from a registered Quantity Surveyor to assure value for money for the project, upon receipt of formal quotation for redevelopment of the Goroka Provincial Hospital from VAMED," he said.
NEC further directed the Minister for Health & HIV/AIDS to ensure that the scope of services fully satisfies hospital needs and a comprehensive contract for services is negotiated and forwarded to Cabinet for approval. He said NEC has also directed the Treasurer to include an annual appropriation of K30 million for the project in annual budgets commencing in 2018 until such time that the loan is expunge
“NEC also directed the Chief Secretary, Secretaries of Finance, Treasury, National Planning & Monitoring and all central agencies to give their full support and co-operation to the Ministry of Health & HIV/AIDS in the implementation of this decision,” the Prime Minister said.