The $21-billion question
Poor planning or missed opportunities?
For nearly 20y years I have learned the ins and outs of the construction business, not through my constituency representation, but through having a ‘roommate’ who is a contractor and developer.
My knowledge of the industry is one of the factors that caused the deterioration in my relationship with some of the councillors in my constituency when I dared to question the bill of quantities for the refurbishment of the Moneague Post Office presented to me by the St Ann Parish Council and whether taxpayers were receiving value for money based on what they sent.
The standard operating procedure for construction, albeit the refurbishment of existing buildings, is that:
(1) an estimate is provided listing the scope of works;
(2) the estimate is approved, and
(3) the contract is awarded.
However, many things can happen between the award of the contract and the implementation of the works. Especially when the design changes and specifications change without the necessary oversight.
For example, in the case of the Moneague Post Office several years ago, the St Ann Parish Council quoted for a few items that stood out to me. They quoted for a concrete slab roof, but built a zinc roof. They rented a portable toilet for workers at a cost that could have built a bathroom out of block and steel. And the labour costs, which are usually 25 per cent of the total cost of the works, were exceeding 50 per cent.
When I challenged the parish council regarding these items and others, I got an enormous pushback. Apparently, they perceived that I should not be questioning whether the taxpayer was receiving value for money. Rather than looking at what I was saying, they said I was accusing people of corruption and mismanaging funds, and all hell broke loose.
Suffice it to say, for several months and years after, the occupants of the post office still complained to me about the poor quality of work, such as the paint being unable to dry on the walls months after ‘completion’.
I learned from that experience that controlling costs in construction required proper planning, minimising variations/changes, using competent contractors, and meticulously monitoring the progress and payments in connection with the progress of the work.
As I listened to the minister of health on the expenditure on the Cornwall Regional Hospital it seemed a case of monumentally poor planning. The minister has already apologised for the extended time this project has taken, but it appears that the cost excesses are directly related to inadequate planning. Instead of doing it right in the first place, we tinker with changes, and each change costs more than the last.
In Spanish Town they are tearing down the old building and building a new structure of 187,000 square feet for $5.5 billion. When completed with the refurbishing the hospital will have 430 beds. And, while not having all the services that a type A hospital carries, it is intended to serve a massive population of Portmore, Spanish Town, Linstead, Old Harbour, and parts of May Pen.
Against this background, we must raise questions when we look at a $21-billion price tag for refurbishing Cornwall Regional Hospital — $21 billion which started in 2016.
The original figure quoted was approximately $2 billion. Eight years later we have no real sense of how much has been spent to date or projected to be spent. That is, how much of it is allocated to equipment, buildings, and professional fees.
I wonder if this expenditure level’s accountability will be similar to the Moneague Post Office.
Indeed, if $1.28 million per bed works for Spanish Town, why is the Cornwall Regional Hospital, a 500-bed facility, almost four times that figure per bed?
The minister of health and wellness says that, over time, there have been variations in the costs in addition to other costs associated with outer services since Cornwall was not operational that covers the external hospitals as well as the refurbishment of the Mount Salem Clinic.
In 2020 Minister Tufton was quoting a figure of $5 billion to complete Cornwall Regional Hospital; however, I recall when the former Shadow Minister of Health Morais Guy toured the facility. He said the figures being quoted were unrealistic and that the works would cost more than $10 to $11 billion. By the following year the minister of health and wellness announced cost variations which had moved it to $10 billion.
Based on its low-growth economy and limited resource access, Jamaica cannot continue to operate without proper planning. These cost variations and extensions of time for many of our nation’s public infrastructure development and rehabilitation projects have been the norm.
A developer/contractor could not run his/her business this way in the private sector. Therefore, we must adopt a visionary mindset to foresee what is essential for our people’s medium- to long-term benefit.
Over the years, Cornwall Regional Hospital has been plagued with problems. With Montego Bay being a tourist destination, did anyone contemplate how long it would have taken to build a new, modern, state-of-the-art, world-class hospital for Jamaicans and foreigners to be treated?
I am positive it would’ve taken less than eight years. In this era, when data is readily accessible, people can ‘smell and taste’ when the reality differs significantly from the intentions. For this financial year, the National Works Agency’s recurrent expenditure budget is $1.248 billion for Jamaica’s “Roads Infrastructure Development and Management”. In other words, for routine road construction and repairs across the island. The refurbishment and repairs to Cornwall Regional Hospital is $21 billion.
But, alas, “A swif’ mek wass-wass no gedder honey.” It is because of haste that wasps don’t gather honey.
We need to be more strategic for the long term development of our country and people’s lives.
I look forward to the completion of Cornwall Regional Hospital.
Lisa Hanna is Member of Parliament for St Ann South Eastern, People’s National Party spokesperson on foreign affairs and foreign trade, and a former Cabinet member.