The note says: “Brexit, the pandemic and recent geopolitical developments have severely impacted construction industry supply chains and more general economic challenges - the NCH project is not immune to these external challenges.” This is 73.2 per cent of the allocated budget. The Department of Health note says the capital budget of €1.433 billion has not yet been depleted and to date €1,049,001,707 has been spent as of July. However, with a number of months of fitting out to be completed after that date questions were raised at a PAC meeting in June as to whether it could be 2025 when the NCH finally opens. The PAC was told earlier this year that construction of the hospital at the St James’s Hospital site is expected to be substantially complete by the end of January 2024. He said there’s “potentially nearly three years to go on this project.” It is nearly impossible to estimate hospital construction costs without. PAC chairman, Sinn Féin TD Brian Stanley, commented on the spending saying: “We’re already into a situation where it exceeds what the original estimates were for the cost of it and we’re still somewhat away from opening the doors”. Determining hospital construction costs can be a vexingly complex topic influenced by several factors ranging from budget considerations to desired patient health outcomes. It says this is “due to the fact that we are talking about a live contract and speculation on any costs will be detrimental to the Development Board’s commercial engagements.”
#HOSPITAL BUDGET PLANNING AND COST ESTIMATES UPDATE#
However, there are fears that the pandemic delays, inflation and other factors like Brexit impacting on the supply of goods and services will increase construction costs and opposition politicians have long suggested that the total spend on delivering the NCH could exceed €2 billion.Ī note to the PAC accompanying a letter from Department of Health secretary general Robert Watt says that a definitive update on the costs cannot be provided. Another €300 million is expected to be spent on the integration and transfer of services from the existing three children’s hospitals in Dublin including information technology and commissioning costs bringing the total expenditure to €1.73 billion.
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