The committee in charge of the new hospital is still negotiating a contract amount with the company that is to be awarded the construction contract for the project.
The Chief Procurement Officer issued a notice of intent to award the construction contract to Eastern Construction Corporation, headed by Korean American businessman Daniel Myung, a few months ago. (An earlier report said the notice of intent to award was issued to Eastern Power Solutions, however, that is a different company owned by the same principals, Eastern Power Solutions is building a solar farm project in Pavaiai and has signed a Power Purchase Agreement with the American Samoa Power Authority).
Another round of negotiations took place last Thursday, but according to the Chairman of the committee, Health Director Motusa Tuileama Nua, there were still disagreements between the committee and the company on costs. Asked how much of a difference, he said, “It’s in the millions.”
He referred our questions to the Director of the ARPA Office Keith Gebauer.
According to Gebauer, the committee is trying to get the best deal, one that is favorable for the government. He added, “This is a complex project and we want to make sure we exercise due diligence.”
He said staff with subject matter expertise is going over prices before they can complete the cost assessment.
Governor Lemanu Peleti Mauga has said that construction of the new hospital at Lions Park will begin before the end of the year.
The new hospital is funded with ARPA money to the tune of $200 million. The design work is by Honolulu-based company Architects Hawaii Limited.
During the recent budget hearings, there were concerns about whether all ARPA funding could be spent within the deadline.
The ARPA Director explained that of the $490 million received in ARPA funding, all but $9 million has been obligated. The deadline for all ARPA money to be obligated is December 31, 2024. All ARPA funds have to be spent by December 31, 2026.
Gebauer explained that the $9 million that has yet to be obligated is funding that was awarded under a formulae to states and territories to make up for lost revenue during COVID. He said American Samoa was given a cap of $10 million and, as of now, just under $9 million of this fund has not been obligated. He said the Governor will decide how this money will be used.
