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New Hospital – Tender Runs Out


The Regional Government has announced that the tender process for the construction of the new hospital has expired and that none of the five companies who had expressed an interest had submitted a tender.

In their announcement, the Regional Government expressed their regret saying.

“The Regional Government of Madeira announced, on the 20th of December 2018 the opening of a tender process, limited by previous qualification, for the contract for the construction of the Central Hospital of Madeira (HCM), with a base price of 205 900 000,00 euros (251 198 000, 00 euros, VAT included) with  an execution period of 50 months.

Up to the deadline for the submission of tenders (25th of February 2019) applications had been received from 8 candidate groups, one of which was excluded. After a careful process of analysing all the documentation delivered in support of the technical and financial competence of more than twenty companies that constitute the 8 candidate groups, on the 9th of January 2020, the Regional Government invited the seven candidates listed below to submit proposals:

  • Tecnovia Madeira, Sociedade de Empreitada SA / Teixeira Duarte – Engenharia e Construções, SA
  • SOCICORREIA – ENGENHARIA, SA / Puentes y Calzadas Infraestructuras, SLU
  • ETERMAR – Engenharia e Construção, SA / CONSTRUCTORA SAN JOSE, SA PT / ALVES RIBEIRO, SA / Constructora San José SA
  • Domingos da Silva Teixeira, SA / SACYR SOMAGUE, SA / RIM – Engenharia e Construções, SA
  • Zagope – Construções e Engenharia, SA / COMSA, SA / Comsa Instalaciones y Sistemas Industriales SAL / Extraco, Construccións e Proxectos, SA

The deadline for the submission of proposals was the 22nd of June 2020. However, none of the candidate groups submitted proposals although five presented justifying statements to that effect.

Five of the invited candidates justified their non-submission of proposals as they budgeted the execution of the HCM at a value higher than the base price of the work, that is, 205 900 000.00 euros. Since the construction of the hospital will include work of significant technical complexity, which includes the purchase of materials and equipment from a wide range of suppliers, both in the national and international markets, the current instability in these markets has made it difficult for the invited groups to manage their proposals, and commit to a pre-determined base price.

Notwithstanding the deadline extensions granted by the Regional Government for the candidates to prepare their proposals, especially in light of the pandemic, it was found that the government created difficulties and obstacles that proved insurmountable for the invited candidates to overcome, hence their inability to submit final proposals. 

In a statement, the regional Secretary for Equipment and Infrastructure, Pedro Fino, stated “The Regional Government, aware of the irrevocable need for the Autonomous Region of Madeira to have a new hospital that responds to current and future needs in the area of ​​health, maintains the firm purpose of carrying out the work and started today to develop the mechanisms necessary tom achieve this through a new administrative procedure for public procurement”. He also stressed that” the Regional Government foresees the launch of a new procedure this year, between September and October, to enable construction work on the HCM to commence, if possible, in the first half of 2021.”

It should also be remembered that, at this moment, the public tender for the provision of inspection and coordination services for the new hospital is taking place and expropriations in the Santa Rita area, where the HCM will be located, have been ‘finalised.’

Samantha Gannon

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