Legal disputes stall Lubowa hospital project

In March 2019, Parliament approved financial support for the construction of the International Specialized Hospital of Uganda project at Lubowa,

However, the companies responsible for construction have run into difficulties.

In a statement presented to Parliament, health minister Jane Ruth Aceng said the construction project has stalled over an alleged breach of contract by Finasi the main contractor and Roko Construction Company.

Finasi declared a Chinese sub-contractor, Power China Guizhou Engineering Co. Ltd, to conduct civil works instead of Roko. This means that the construction of the hi-tech specialised hospital will have to wait for a court decision.

"The legal issues if not expeditiously disposed of are likely to affect the progress of works. Already, it appears that the delay to sort out the shareholder dispute amicably has stalled the civil works on site. We are hopeful that the parties will reach a settlement and continue the works in earnest," she said.

Jane Ruth Aceng the minister of health. File Photo

Aceng further noted that the health ministry has no objection to the approval of the proposed sub-contractor as requested by the SPV (subject to proof of technical and financial capacity).

"We have reserved our approval as we await the opinion of the Attorney General as to whether any such approval would not be construed as contempt of court. However, the ministry of health is fully committed to ensuring that the contractor delivers the project on time as the government expects that the Special Purpose Vehicle (SPV) remains fully responsible to deliver the international Specialised Hospital of Uganda in accordance with the terms of the PWIA and the modifications thereto," she noted.

The project has faced a lot of challenges ranging from the appointment of engineers to a proposed supervision team.

"Appointment of owners engineer and proposed supervision team has not yet been regularised due to lack of funding from the Ministry of Finance to supervise works. There is also need for clarity from the contractor with regards to the submission of key project documentation such as training schedule for local health workers in Bergamo, Italy, scope and value of works proposed for sub-contractor, the nomination of a person with powers of attorney, revised drawings among others," read the statement.