Government gives Italian investors Shs1.4 trillion to construct hospital

Parliamentarians have trashed a minority report to block the funding of a 264-bed specialized hospital, and instead approved a guarantee of Shs1.4 trillion to Italian investors, Finasi Roko Construction SPV Limited to construct the facility in Lubowa, Wakiso district.

The report had been presented by Mukono Municipality MP Betty Nambooze.

The hospital will, upon completion, treat conditions such as cancer, heart diseases, organ transplant, fertility treatment, highly specialized surgeries, and bone marrow transplant, among others.

Government will then take over the hospital after 10 years according to the agreement.

Finasi Roko Construction SPV Limited is a major member of the Finasi-RoKo consortium.

Cecilia Ogwal, the Dokolo Woman MP told the House on Tuesday that the Mulago Specialised Women and Neonatal Hospital, a component of Mulago National Referral Hospital, was built at only about Shs92 billion which points towards corruption, a point echoed by  the Butambala legislator Muwanga Kivumbi who said ‘the cost of constructing the hospital is exaggerated’.

On his part, James Waluswaka the Bunyole West representative called the proposal ‘risky’ and faulted the government for picking on an investor without undertaking a bidding process to guarantee that anyone who gets the promissory note is selected on merit.

Finasi Roko wants the project financed through a promissory note from government as a public-private partnership.

Under the arrangement, government will finance the firm to construct and run the specialised facility and payback within eight years from the commencement of operations.

Parliamentarians also objected to the high-interest rate of Shs477Shillings and the purpose of financing the facility, considering the poorly financed hospitals across the country.

Despite the outcry, Speaker Rebecca Kadaga observed that the project is of immense benefit to Ugandans.