The President of the Regional Government, Miguel Albuquerque, revealed this Wednesday that the technical evaluation regarding the updated costs of the third phase of the new hospital should be completed within two weeks, after which a new international tender for the project will be launched.
Speaking on the sidelines of a visit to the company Press Power Unipessoal Lda, in Funchal, the President reacted to today’s headline in DIÁRIO newspaper, which raised the possibility that the total cost of the hospital could reach one billion euros after the tender for the third phase attracted no bids.
“I think we will be able, within 15 days, to have this evaluation,” said Miguel Albuquerque, explaining that the Regional Government is finalising a technical analysis of the impact of rising construction, material, and labour costs.
The head of the executive confirmed that the initially planned budget will have to be revised, citing the significant increase in construction costs over recent years. “What we have said, and continue to say, is that there has been an increase in construction, material, and labour costs, and that requires a price reevaluation.”
Miguel Albuquerque explained that the Government is currently carrying out a detailed technical assessment of the costs associated with the final phase of the project, which he described as more complex and technologically demanding.
“This last phase is much more technical and much more complex, with a very different set of materials and a very large technological component,” he said, adding that the overall process remains on schedule.
Although he acknowledged that the project cost will increase, Miguel Albuquerque declined to confirm any specific figure at this stage. “Nothing indicates, at this moment, that it will reach one billion euros. There will be an increase, but I cannot say at this moment what it will be.”
According to the President, once the technical evaluation is concluded, a new international tender adjusted to current market prices will be launched. He also noted that part of the rise in costs is linked to the international context, particularly the impact of the war in Ukraine on the construction sector.
Regarding the additional funding required to accommodate the revised costs, Miguel Albuquerque stated that the Republic remains committed to covering 50% of the project. “This is a commitment of the Republic and, naturally, we will have to make the update, and that update will have to be approved,” he told journalists.
Miguel Albuquerque also stressed that rising construction costs are affecting several public works projects, pointing to additional expenses recorded in projects in Porto Santo as an example.
Samantha Gannon
info at madeira-weekly.com
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