The project team working on delivering a new hospital for Jersey is continuing with approximately £55,000 costs per month until further notice, even while the project remains under review, according to the Treasury Minister.
This is on top of the almost £77m that the Government have already spent on the 'Our Hospital Project' to create a health campus at Overdale since its inception in 2019.
Deputy Ian Gorst confirmed in response to a written question earlier this week that "expenditure on external professional services fees for the delivery of the hospital design is largely on hold".
The "limited continuing expenditure" is "in support of the 100-day review into the Our Hospital project".
The review is not expected to be completed until 1 November, after it was delayed amid doubt over whether costs racked up by halting the contract to build 106 new homes on Kensington Place will definitely be covered.
Deputy Gorst explained that when the outcome of the review is agreed, then "further work will be done by the GoJ Project Team in determining how best to deliver the outcomes which will naturally include professional fees".
Pictured: Deputy Ian Gorst, Minister for Treasury and Resources.
He added: "With respect to professional fees, due to the scope and scale of the Government of Jersey’s capital delivery programme, it should be noted that for any large scale project the Government of Jersey would routinely buy in specialist project resource."
In addition, Deputy Gorst explained that there are other ongoing costs relate to enabling works at the former Les Quennevais School which "will provide modern, fit-for-purpose healthcare facilities".
Deputy Gorst said that "these works are progressing as planned" and the expected cost by the end of 2022 is approximately £9.5m.
Chief Minister, Deputy Kristina Moore, also answered a question about the additional annual staffing requirements and running costs for a dual hospital site, compared to the agreed single Overdale site. She admitted that "there is no detailed information on facilities management operational costs, nor is there detailed information on workforce costs".
Pictured: The Chief Minister could not confirm the additional annual staffing requirements and running costs for a dual hospital site, compared to the previously agreed single site at Overdale.
Deputy Moore described "any meaningful comparison of operational costs between a dual-site and the existing single-site proposal" as "very challenging", stating that it "would not be realistic to develop a detailed operational costs analysis as part of the 100-day plan".
She confirmed that once the review is completed, "the scope of the project and new business cases will need to be developed, incorporating more detailed information on future revenue costs", especially if the project is taken in a new direction.
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We could have borrowed the money at 2% interest when it was passed by the States. It is definitely going to cost more for the 2 sites IMHO after further delays and procrastination.
The First Minister needs to think again, and ensure the costings are included in such a choice between Overdale single site and whatever two sites are dreamed of.
Time is SHORT and we need to start building, otherwise there will be no hope of having a hospital by 2026, thus increasing the maintenance cost on the present hospital.