Jersey’s Health Minister has insisted he will not sign off the hospital contract until he is satisfied it delivers a “fair, balanced and sustainable” deal, after it emerged this week that negotiations were still not finalised five months after the preferred bidder was named.
Deputy Tom Binet said he would only complete the procurement process for the new acute hospital at Overdale when the terms were “in the best interests of both parties, but especially Islanders”.
A meeting of the Council of Ministers was convened on Tuesday in a bid to break the apparent stalemate over the contract, and a States Members briefing was due to take place today.
In a statement issued this afternoon, Deputy Binet said there was continued political alignment on the need to deliver the hospital, but stressed that finalising a deal of such scale required “careful, detailed consideration”.
“Our collective focus is on securing a robust agreement that delivers the hospital as planned while representing appropriate value and protection for the public purse,” he said.
The government had previously said that Bouygues – which was last year reported to have recorded losses totalling £136m since 2022 – would refine its proposals, confirm its supply chain and prepare for main works “in early 2026”.
However, the process has taken longer than expected amid a challenging global construction climate, inflamed by the conflict in the Middle East’s impact on supply chains.
Industry leaders have warned that the conflict in the Middle East is driving sharp increases in energy and material costs, alongside supply-chain disruption and price volatility.
Having previously described both parties as working in “uncertain times”, Deputy Binet did not directly address the reasons for the delay in his latest statement, but reiterated that decisions would be taken in line with guidance and procurement rules, including during the election period if required.
He also did not comment on whether the overall project cost was expected to be impacted.
The Minister also described the project as being “on a more advanced footing than any previous hospital scheme”.
“Procurement activities are also approaching a decision point,” he said.
Work – including clearing and levelling – has already taken place on the Overdale site in preparation for the main contractor to begin construction once a deal is signed.
The Minister’s statement in full:
Yesterday, I updated the Council of Ministers on progress at this advanced stage of the procurement process for the Acute Hospital at Overdale. We discussed the current position and the remaining steps.
Ministers remain fully aligned on the need to deliver a new Acute Hospital for Islanders and are clear that this project is essential and deliverable. They also recognised that finalising a Main Works Contract for a project of this scale and complexity requires careful, detailed consideration to ensure the outcome is right for the Island.
Our collective focus is on securing a robust agreement that delivers the hospital as planned while representing appropriate value and protection for the public purse. Ministers are united that decisions will be taken in line with established guidance and codes of practice, including those that apply during the election period, should that be necessary.
This Government has made significant progress overall: Planning permission is in place, funding has been identified and development works at the Overdale site are underway and continuing in earnest, placing the project on a more advanced footing than any previous hospital scheme. Procurement activities are also approaching a decision point.
As with any live and confidential tender process, it is essential that commercial discussions are conducted carefully and responsibly. As Minister for Health and Social Services, I will complete this process only when satisfied that the terms deliver a fair, balanced and sustainable agreement in the best interests of both parties, but especially Islanders.