Hours after Austrian company, VAMED Engineering announced its decision to move to the International Chamber of Commerce (ICC) over the non-payment of €45.5 million, the Government of Guyana fired back on Thursday evening, disclosing that both the Guyana Pediatric and Maternal Hospital and the New Amsterdam Hospital Campus Projects were severely delayed.

On Thursday, the engineering and construction company said it was the Government’s failure to effect the necessary payments that led to a slowdown in the pace of the two projects.

According to the company, the last payment was received in May, 2025.

But in its statement, the Government rubbished the statements made by VAMED’s Attorney Nigel Hughes and company officials.

“From the outset, the Government has remained fully committed to the successful completion ofboth hospitals, which are of strategic importance to the people of Guyana. At every stage, the Government acted in good faith, honouring its contractual obligations while consistently engaging VAMED to address significant delays, performance deficiencies, and contractual non-compliance based upon reports received from the two projects’ supervising engineers,” the Government statement said.

It said the Government repeatedly documented concerns regarding delays in execution, and failure to meet agreed milestone.

The Government said the Health Ministry only “exercised its contractual rights” after providing VAMED with numerous opportunities to remedy these deficiencies.

“The Notices of Intention to Terminate were issued pursuant to the contractual provisions after careful consideration of the contractor’s performance and in accordance with the dispute resolution mechanisms established under the contracts,” the Government explained

The Government also rejected the suggestion that certified payment certificates automatically establish an undisputed indebtedness. It said the amounts referenced by VAMED remain subject to the contractual valuation process, applicable contractual provisions, and the resolution of multiple outstanding contractual issues.

It said the Health Ministry has consistently sought an amicable resolution throughout the process, and has participated in discussions aimed at avoiding resort to termination and or arbitration, with the hope that the projects would be completed to provide the intended valuable services to the people of Guyana.

It warned that should VAMED commence arbitration proceedings, the Government will vigorously defend its position before the appropriate tribunal.

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