IN response to criticism regarding the design costs of the proposed Level 5 Hospital in the National Capital District (NCD), Governor Powes Parkop has addressed key concerns, providing detailed clarifications on the budget, comparisons, and the overall importance of the project.
Criticism from East Sepik Governor Allan Bird, comparing the new NCD Level 5 Hospital to Boram Hospital in East Sepik, was dismissed by Governor Parkop as comparing “apples to oranges”.
He said that the NCD Hospital is a greenfield project, built from the ground up, whereas the Boram Hospital was an extension of an existing facility.
“A more appropriate comparison would be with Vamed’s costing plan for similar projects,” Parkop said.
He cited Vamed’s expansion of Kimbe Hospital, which cost K48,000 per square meter. In contrast, the NCD Hospital is projected to cost K16,000 per square meter—significantly lower.
Governor Parkop acknowledged the National Executive Council’s (NEC) decision to renegotiate the loan terms for the hospital, including reducing interest rates and extending the repayment period.
He also clarified that the K800 million figure was an estimate, subject to adjustments, as plans were underway to reduce the hospital’s capacity from 500 beds to 200, which would lower costs further.
Parkop noted that Vamed, the company being hailed as a model, had incurred high costs in previous projects. He criticized Vamed’s work in Goroka, where the labor ward was located on the fifth floor of a building with no elevator.
“Imagine mothers having to climb five flights of stairs to give birth,” Parkop exclaimed, highlighting the need for better standards in hospital designs.
Governor Parkop stressed that the design fees of K10 million paid so far were justified, given the magnitude of the project. He explained that large, complex projects like the NCD Level 5 Hospital required substantial time and money for design and initial approvals, which involved technical expertise.
He pointed to successful infrastructure projects such as the 9-Mile to PAU road and the Vadavada Taurama road. “I have a history of service delivery and impact projects, and this hospital is no different,” he stated.
Governor Parkop also responded to claims of delays and mismanagement, asserting that NCDC only became involved in the hospital project in 2019, after years of stagnation.
“Nine years have been wasted, and all allocated funds evaporated before my office was involved,” he said. “Everything is on record, and I have nothing to hide.”
He emphasized the importance of the hospital for the people of NCD, Central, and Gulf, noting that the facility would provide essential services to these regions for many years to come. “This is a public asset with immeasurable lifesaving value,” Parkop said.
He reiterated that NCD needed a modern hospital to reduce the burden on Port Moresby General Hospital, which has already been declared a National Teaching and Referral Hospital for specialist care.
“The new Level 5 Hospital is not just a necessity; it’s a project that has been in the pipeline for years and must happen,” he added.
Parkop assured that the K800 million estimate covered not just the hospital infrastructure, but also equipment and staff training.
“We have prepared holistically, learning from the Enga hospital project, and the costs are reasonable,” he said.
Negotiations with Chinese partners are expected to take place this week to finalize the plans in line with NEC’s decision to scale down the project to 200 beds.
Governor Parkop stress that the hospital project represented a lasting investment for the city. “I am committed to delivering this hospital for the people of NCD, Central, and Gulf. We must get the job done, despite the challenges,” he said.
