Ugandans will have to wait for another two years for the commissioning of the long-awaited Lubowa specialized hospital because of delayed civil works.
Ramathan Ggoobi, the Finance Ministry Permanent Secretary and Secretary to the Treasury disclosed this while announcing the release of funds to government agencies and departments Thursday.
He explained that the commissioning that was expected in September this year, has been pushed to 2024 because of the delayed civil works due to heavy rains and COVID-19 interruptions.
Without giving details, Ggoobi said 94 other government projects have suffered similar delays resulting from the same causes. The 264-bed capacity specialized hospital will cost the government Sh 1.4 trillion upon completion.
In 2019, parliament guaranteed a loan to Finaci/Roko SPV Limited for the construction and development works of the hospital. According to Ggoobi, the civil works, stoking medicine for the entire year and skilling medical professionals will cost Sh 900b.
He says that the remaining Sh 500m covers the interest the loan will accumulate over 6years. According to Goobi, Finaci SPV Limited is responsible for the financing, designing, and construction of the hospital while the government’s role is to issue promissory notes as and when they are due.
Promissory notes are an irrevocable legal promise between two parties.
Reports indicate that by April last year, the government had issued promissory notes worth Sh 406 bn representing 22.7 % of the total cost of construction.
The government had initially planned to commission Lubowa hospital in June 2021 and later September, which didn’t happen.