The signing of a letter of intent between St. Maarten Medical Center (SMMC) and general contractor FINSO on adjusting terms for the construction of St. Maarten General Hospital (SMGH) due to changed circumstances was reported earlier this week. Minister of Public Health, Social Development and Labor Omar Ottley said that while contract revisions are never welcome, current market conditions of persistent high inflation and supply chain disruptions due to the COVID-19 pandemic and war in Ukraine made it impossible to finish the job under the original terms agreed in 2018.
The press release stated that the building’s design would be further optimised too and SMGH is now scheduled for completion in 2025. In the meantime, SMMC has been significantly expanding its medical services as part of the entire project and its financing.
What remains unknown is the extent of the obvious budget overrun. That raises questions because it regards means produced by taxpayers in both St. Maarten and the Netherlands, from – among others – Social and Health Insurances SZV and the Dutch-sponsored Trust Fund.
Perhaps the intention is to wait until signing the actual new contract, which would be understandable, but in principle the public has a right to know. Other than the additional amount needed, the next question will be how this is to be covered, as one assumes that is settled beforehand.
With entities such as the World Bank involved, a large degree of openness may be expected, especially considering the nature of this venture and its importance to the wellbeing of the people also in St. Eustatius and Saba. Full transparency and accountability are clearly required.
