Money for ongoing works at Specialty Hospital, CJIA expansion coming out of Contractors’ pockets – Dr Luncheon

The site of the multi - million dollar Specialty Hospital

By Fareeza Haniff

The site of the multimillion-dollar Specialty Hospital
The site of the multimillion-dollar Specialty Hospital

[] – Contractors executing current works at the Specialty Hospital and at the Cheddi Jagan International Airport (CJIA) are basically using money from their pockets to keep the projects afloat, after their budgetary allocations were not approved in the National Assembly.

This is according to Cabinet Secretary, Dr Roger Luncheon, who told reporters today (Thursday, June 5) that this arrangement is in place as contractors have been assured that their monies, will be repaid.

However, when questioned, Dr Luncheon explained that there is no written agreement to this effect, but more of a mutual understanding between the contractors and government.

“Everyone who are not being paid for work being done and are continuing to work, have a reasonable expectation to be paid. Everything they have to subscripe to with their own money,” Dr Luncheon told a post cabinet media briefing.

The Cabinet Secretary could not give a definite answer as to whether the administration will have to pay penalties for missing payment deadlines, as stipulated in the CJIA contract.

In April, the Combined Parliamentary Opposition, using its one seat majority disapproved the $910 million allocated for the specialty hospital in the National 2014 Budget.

Artist’s impression of CJIA’s new terminal
Artist’s impression of CJIA’s new terminal

They also voted against the voted against the $6.5B allocated for the CJIA expansion project.



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