Commissioning of Lubowa specialized hospital postponed to 2024

Chinese firm to construct Lubowa Hospital USD $25M less than ROKO
Artistic impression of Lubowa International Specialized Hospital

Kampala, Uganda | URN | 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 on Thursday 14, April 2022.

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 Shillings 1.4 trillion upon completion.

In 2019, parliament guaranteed a loan to Finaci/Roko SPV Limited for the construction and development works of Lubowa specialized hospital. According to Ggoobi, the civil works, stocking medicine for the entire year and skilling medical professionals will cost Shillings 900 billion.

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He says that the remaining Shillings 500 million covers the interest the loan will accumulate over 6 years. 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 Shillings 406 billion representing 22.7 per cent of the total cost of construction.

The government had initially planned to commission Lubowa specialized hospital in June 2021 and later September, which didn’t happen.