Published On: Mon, Nov 28th, 2016

Warning signs

SZV has decided to dig in its heels and appeal last Friday’s court ruling that has brought the development of the new hospital to a screeching halt. Whether that makes any sense remains to be seen.

The court’s opinion that Inso’s bid was ‘abnormally low’ cannot be brushed aside as irrelevant. What to do? Breaking up the contract with Inso is probably going to cost a ton of money and wading deeper into legal procedures will move the whole hospital project into a distant and uncertain future.

The warning signs were there before the contract with Inso was signed, but SZV, SMMC and the government opted to ignore them.

This newspaper reported in early August extensively about Vamed’s views on the outcome of the bidding process. The court ruling has now confirmed that that vision is correct.

Since – under the threat of huge penalties – there is no way forward with the current developer, the parties on this end of the deal will have to regroup and come up with an alternative. Fast.