THE government has been cleared to take possession of two major hospital construction sites and materials following a ruling by the Full Court that overturned preservation orders made in a legal dispute with Austrian engineering company VAMED Engineering GmbH.
The dispute arose after the Ministry of Health terminated VAMED’s contracts for the construction of the Georgetown Paediatric and Maternal Hospital (GPMH) and the New Amsterdam Hospital Campus (NAHC).
According to Attorney General and Minister of Legal Affairs Anil Nandlall, SC, the contracts were terminated on July 23, 2026, following breaches by VAMED and significant delays in the completion of the projects.
He said that despite repeated efforts by the government to have VAMED complete the projects and resolve the disputes amicably, the contractor failed to perform its obligations.
The government had subsequently taken steps to secure the sites and materials and moved to invoke the performance bonds attached to the contracts.

Each contract was backed by a €15 million performance bond, bringing the combined value of the two bonds to €30 million. The bonds were provided by the Bank of Austria, and the government has taken steps to recover the outstanding sums under the guarantees.
The contractual dispute has also been referred to arbitration under provisions contained in the two contracts.
However, VAMED initiated proceedings in the Guyana High Court, seeking damages for alleged breach of contract and orders restraining the government from taking control of the hospital sites and from invoking the performance bonds.
Justice Renita Singh refused VAMED’s applications for conservatory and restraining orders, but subsequently issued preservation orders preventing the state from taking control of the sites and certain materials pending the appointment of an arbitration tribunal.
The government appealed those preservation orders.
In a September 24 press release, the Attorney General’s Chambers said the Full Court on September 22 allowed the Attorney General’s appeal and set aside five orders made by Justice Renita Singh on August 6. The Full Court was constituted by Acting Chief Justice Navindra Singh and Justice Zamilla Ally-Seepaul.
One of the orders had required the Ministry of Health to preserve both the GPMH and NAHC sites.
The ministry was also ordered to preserve the 52 containers and equipment at the GPMH site and was prohibited from opening or interfering with them. VAMED Engineering was similarly ordered to preserve the containers and equipment and was barred from opening or interfering with them.
The orders further stipulated that only VAMED’s security personnel could access the GPMH site, and only for the purpose of securing the 52 containers and equipment.
Additionally, the Ministry of Health was ordered to preserve all contractor documents, property designs, plans and intellectual property.

In its ruling, the Full Court questioned how the preservation orders could have been issued after the High Court had already refused VAMED’s substantive applications.
“This appeal concerns the validity of five Preservation Orders made by the learned judge,” the court stated.
The judges identified the central issue as whether the trial judge, after refusing the substantive interim relief sought by VAMED, could nevertheless make substantially similar orders by characterising them as preservation orders.
The Full Court concluded that the orders could not stand.
“They are inconsistent with the learned trial judge’s findings,” the court ruled, adding that their “legal foundation was inadequately established” and their substantive effect had not been properly considered.
The Full Court also found that the State Liability and Proceedings Act prohibited injunctions against the state in proceedings of this nature.
It said that prohibition could not be circumvented by describing the orders as preservation orders or by relying on the Civil Procedure Rules. The Full Court further found that the orders lacked the necessary statutory basis under the Arbitration Act 2024. The Attorney General’s Chambers said the High Court’s order referring the contractual dispute to arbitration remains undisturbed.
The court also awarded the attorney general $500,000 in costs.
The ruling therefore allows the Ministry of Health to regain control of the project sites and materials.
“In short, the Ministry of Health is now cleared to take possession of the sites, containers, equipment and associated construction materials and to proceed with the projects as it sees fit,” the Attorney General’s Chambers said.
The projects involved represent major investments in Guyana’s healthcare infrastructure.
The New Amsterdam Hospital Campus, being constructed in Region Six, is a US$161 million (GY$33.6 billion) project designed as a 230-bed, Level Five hospital.
It is expected to provide advanced diagnostic services and specialised medical care and will feature five operating theatres.
The Georgetown Paediatric and Maternal Hospital at Ogle, meanwhile, is a €149 million (GY$31.9 billion), 256-bed specialised facility focused on maternal and child healthcare. The planned services include surgery, an intensive care unit, imaging and oncology services.
The government has said the arbitration proceedings will be conducted in Guyana, with the Paris, France-based International Chamber of Commerce (ICC) administering the process.
Nandlall has described this as part of efforts to establish Guyana as an international arbitration destination.