Miguel Albuquerque acknowledges price updates due to increased construction costs, but does not confirm estimates of one billion euros.
The President of the Regional Government, Miguel Albuquerque, revealed this Wednesday that the technical evaluation regarding the cost update for the third phase of the new hospital should be completed “within two weeks,” followed by the launch of a new international tender for the project.
During a visit to the company Press Power Unipessoal Lda, in Funchal, the government official reacted to today’s DIÁRIO headline which reports that the total cost of the hospital could reach one billion euros, after the tender for the third phase was unsuccessful.
“I think we will be able to have this assessment within 15 days,” stated Miguel Albuquerque, explaining that the Regional Government is finalizing a technical analysis on the impact of the increased costs of civil construction, materials, and labor. The head of the executive confirmed that there will be a revision of the initially projected prices, justifying this update with the significant increase in the costs of construction materials and labor in recent years. “What we said and continue to say is that there has been a substantial increase in the costs of construction, materials, and labor, and this leads to a price update,” he stated.
The president of the Madeiran executive explained that the Government is currently carrying out a detailed technical analysis of the costs associated with the final phase of the project, considered more complex and technologically demanding. “This last phase is much more technical and much more complex, with a set of very disparate materials and a very large technological component,” he said, adding that the process is still “on schedule.”
Despite acknowledging an increase in the project’s costs, Miguel Albuquerque did not confirm any specific figure at this stage. “Nothing indicates, at this moment, that it will reach one billion euros. There will be an increase, but I cannot say at this time what it will be,” he stated on the sidelines of the visit.
As he explained, after the technical evaluation is completed, a new international tender will be launched, adjusted to current market prices. The official also noted that part of the cost increase is linked to the international context, particularly the impact of the war in Ukraine on the construction sector.
Regarding the additional funding needed to accommodate the price revision, Miguel Albuquerque reminded journalists that the commitment made by the Republic remains, guaranteeing a 50% contribution to the project. “That is a commitment from the Republic and, obviously, we will have to make the update, and that update will have to be approved,” he stated.
Miguel Albuquerque also mentioned that the increase in construction costs is a reality across various public works, citing as an example the additional costs seen in projects in Porto Santo.