PHILIPSBURG, Sint Maarten–Judge Alexander van Rijen of the court of first instance of St. Maarten on Friday ruled in favour of Austrian construction company VAMED in the case they had filed against Social & Health Insurances SZV pertaining to the selection of INSO as the developer for the new general hospital of St. Maarten.
VAMED did not agree to the outcome of the tender process, where INSO was the selected developer. In addition to a formal appeal to the tender selection outcome, in VAMED’s argument to the court they stated that the price of INSO for the build and maintenance of the new general hospital was unrealistically low.
SZV formally contested the arguments of VAMED through legal counsel, based on professional advice from KPMG and engineering and project consultant RoyalHaskoning. The judge presented with the case of VAMED however decided that the price of INSO for the project does seem unrealistically low and the reason for this pricing was not sufficiently clarified. As part of the decision, the judge has instructed SZV to halt participation in the development of the general hospital, which has been contracted to INSO.
SZV is very disappointed with the outcome of this court case it stated in a press release. “In the opinion of SZV, all the information presented, clarifying the pricing of INSO for the project, was realistic and acceptable. SZV does not agree with the decision of the court and sees this as a delay in the development of the much needed new general hospital which is the pillar for facilitating quality healthcare on St. Maarten.”
The continuation of the development of the new general hospital is important to St. Maarten, SZV added. “The long-term benefits of a new hospital are evident and for this reason, SZV will appeal the decision of the court. Needless to say, SZV does respect the decision of the court and will adhere to the current ruling, which also means that the project development of the new general hospital is suspended, pending the outcome of the appeal procedure.“
Source: The Daily Herald https://www.thedailyherald.sx/islands/61840-szv-disappointed-after-losing-court-case-on-new-hospital