Guyana seeks €30M in bonds after hospital contract terminations

The Government of Guyana has initiated legal proceedings to recover approximately €30 million in performance bonds following the termination of two major hospital construction contracts. The contracts, held with VAMED Engineering GmbH, were for the New Amsterdam Hospital Campus and the Guyana Paediatric and Maternal Hospital at Ogle.

Attorney General Anil Nandlall stated that the contracts were terminated on July 23 due to persistent delays and contractual breaches. Each contract was backed by a performance bond of roughly €15 million, and the government is now seeking these sums through the Bank of Austria.

The dispute is moving toward arbitration through the International Chamber of Commerce (ICC). While the ICC is headquartered in Paris, Nandlall noted that the arbitration will be seated in Guyana. The government has also taken steps to secure the hospital sites and materials and is appealing aspects of High Court orders regarding site control while the arbitration tribunal is established. Nandlall emphasized that the termination does not signify the abandonment of the projects, but is a measure to protect public investment.