(Kaieteur News) – VAMED Engineering GmbH, a Vienna-based international healthcare infrastructure provider, announced Thursday that it will pursue international arbitration against the Government of Guyana over unpaid, certified costs on two major hospital construction projects — a claim the government has firmly rejected, calling VAMED’s account a “misleading narrative” that omits critical facts about the contractor’s own performance.

VAMED says it is owed approximately EUR 45.53 million, including at least EUR 19.15 million in certified payments plus variations, indexation, additional works, and other contractual entitlements. The government’s own engineer has reportedly estimated Guyana’s indebtedness to VAMED at approximately EUR 37.94 million.

The claims stem from two Design-and-Build Contracts between the Ministry of Health and VAMED: a EUR 149 million agreement dated 8th June, 2022 to build the Guyana Pediatric and Maternal Hospital in Georgetown, and a EUR 150 million agreement dated 12th July, 2023 for the New Amsterdam Hospital Campus in Region Six. Together, the projects were intended to deliver specialised maternal and pediatric care in Georgetown and expand access to quality healthcare in Region Six.