EIB shocked over hospital delays

Inspectors from the European Investment Bank (EIB) have expressed serious reservations regarding the serious delays in the operation of the new Nicosia General Hospital.

Two inspectors from the EIB who were in Cyprus last week expressed their concern regarding the serious construction delays, leading to call on the government to submit a full report by next month.

Reports suggested the EIB inspectors were shocked by what they found and were angered with the lack of control and incompetence involved in the project. They also said the EIB might pull its funding from the project. The EIB had agreed with the previous administration to provide a EUR 50 mln loan for the construction of the hospital. The EIB is also demanding to know why the government has not yet appointed a General Manager and needs further explanations regarding reports that necessary equipment has not yet been ordered.

The hospital project was expected to be complete by mid-2003 at a cost of CYP 35 mln, which was then raised to CYP 65 mln, but now is set to cost CYP 100 mln with no clear indication as to when the hospital would be up and running.

President Tassos Papadopoulos described the issue as one of the “biggest scandals since the foundation of the Republic”.

Health Minister Andreas Gavrielides denied that the EIB had threatened to withdraw funding for the project.

“We informed them of our plans and I think at the end of the day they were satisfied,” Gavrielides said. “We expect to send them our report by mid-May. There is a delay but we had constructive discussions.”

The government has launched an inquiry into the scandal.