Hospital cost balloons from 157 Million to 278 Million, main building now projected for June 2027

GREAT BAY--Minister of Public Health, Social Development and Labor Richinel Brug has informed Parliament that the cost of the new St. Maarten General Hospital has increased from its original approved budget of US $157 million in 2016 to a current budget of US $278 million, an increase of approximately US $122 million, while the main building is now projected to be completed by June 30, 2027. It has been a decade (10 years) since the new hospital got underway.

The Minister provided the update during the continuation of a parliamentary meeting on the state of affairs of the St. Maarten General Hospital. The meeting, which originally began on April 7, resumed with Brug answering questions posed by Members of Parliament during the first round of deliberations.

Brug explained that while an earlier completion target had pointed to 2026, the project timeline has since shifted. He clarified that completion will take place in phases, with the main building scheduled to be completed first. Once that portion is completed, the current St. Maarten Medical Center building is expected to be demolished, after which the remaining components of the new General Hospital project will be finalized.

“The main building would be completed June 30, 2027. That is a projected date,” Brug told Parliament, adding that the additional works are projected to be completed later.

Brug said the project was initially approved in 2016 with a budget of US $157 million. The current budget now stands at US $278 million. This represents an increase of approximately US $122 million over the life of the project.

Responding to questions about delays, Brug said the expected milestone of celebrating the highest point in December 2025 was not achieved due to external factors. These included an island-wide shortage of sand and cement caused by logistical constraints in December 2025, followed by the Christmas holiday period.

Although government is not a party to the construction contract, Brug stressed that government maintains an oversight interest because of the hospital’s importance to the community. He said the contractual relationship is between St. Maarten Medical Center and the contractor, but government remains in regular contact with hospital management to monitor progress and ensure delays are addressed.

“While the contractual accountability rests with the hospital and its contractor, government expects that all available remedies, including delay damages, are enforced where appropriate and that decisive corrective actions are taken without further delay,” Brug said.

He explained that, under the contract, the contractor may be subject to delay damages if the agreed completion time is not met. These damages are capped at 10 percent of the contract price.

Brug said the design-and-build structure of the contract places responsibility for delivery on the contractor, while St. Maarten Medical Center is responsible for managing the contractual relationship. He also said he intends to provide certain requested financial details to Parliament through the confidential route once the information is received from the hospital.

On the physical scope of the project, Brug said the initial design for the main building, as included in the contractor’s bid and excluding the optional wing, consisted of approximately 14,765 square meters. The main building currently under construction, excluding the basement, now comprises approximately 18,700 square meters.

He said the initial layout included the basement, three and a half functional floors and a technical building. The current main building under construction includes a basement, four functional floors and a technical floor, with three additional technical buildings also included.

Brug said completion under the contract refers to the stage at which works are completed in accordance with agreed project specifications and are ready for intended use. This means essential building systems must be installed, tested and operational, and any remaining items must not prevent the safe and functional use of the facility.

The Minister also noted that completion may occur in phases, with specific parts of the works certified and made ready for use independently. Formal completion, he said, is established through the issuance of a completion certificate in accordance with the contract.

On the workforce involved in the project, Brug said the current total workforce consists of 162 individuals. Of that amount, 114 are classified as temporary resident foreign workers, while 48 are local workers. This represents an estimated distribution of approximately 70 percent foreign workers and 30 percent local workers.

Applying that same ratio to a site population of 150 workers, Brug said approximately 44 to 45 would be local workers, with the majority being foreign workers.

The Minister also addressed questions about employment opportunities and the previously announced job fair. He said the National Job Fair 2026, organized by NESC, is planned for later this year and is intended to connect job seekers with employers through structured engagement in line with international public employment service standards.

Brug said the fair will focus on key sectors including hospitality, marine, retail, financial services and small and medium-sized enterprises. It will also promote NESC services and support vulnerable groups in accessing employment. A youth pre-registration event is scheduled for September 22, 2026 at NIPA, followed by the main job fair on September 24, 2026 at the Aleeze Convention Center.

On the financial relationship between SZV and St. Maarten Medical Center, Brug informed Parliament that SZV has an outstanding balance of approximately 23.9 million payable to the hospital. Of that amount, approximately 19.6 million relates to medical services from 2022 to 2025. Government, he said, is responsible for the health care expenses of OZR-insured persons.

Brug also addressed the location of the St. Maarten Laboratory Services facility within the hospital project. He said that, based on information received, the location of the SLS facilities has been adjusted in consultation with SLS and incorporated within the main building. Final discussions between the parties are still ongoing.

The Minister further explained that the business case for the St. Maarten General Hospital was developed before the construction contract was signed by a project team consisting of St. Maarten Medical Center, SZV and government, with support from external advisors including KPMG and Royal Haskoning.

In response to questions related to patient referrals to Colombia, Brug said SZV maintains a formal and accessible complaint process. However, he noted that complaints are not categorized by subject or destination, meaning SZV cannot provide a specific number of complaints related to referrals to Colombia or the responsibilities of chaperones.

He said SZV has taken corrective steps in response to concerns raised by patients. For example, the meal policy was adjusted by reintroducing a daily allowance instead of meal vouchers, giving patients greater flexibility in choosing meals that meet their needs.

Regarding hotel accommodations, Brug said corrective measures were initially introduced. When those measures did not sufficiently resolve the concerns, SZV discontinued use of that hotel and moved to another provider. He added that SZV conducts annual site visits and maintains regular virtual meetings with hospitals in Colombia.

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