Dunedin Public Hospital is in line for a much needed $300 million revamp. It has recently been revealed (ODT Sat 11 June) that potential tenderers have been told by the Ministry of Health that a public private partnership (PPP) should be considered.
The question is why? Why would the government get a private corporation to borrow money for the costs of the revamp as well as build it? Then repay this corporation the costs of construction, plus the cost of borrowing the money, plus a generous profit margin for both. Surely it is cheaper for the government to pay for the costs of construction itself. And it would have far greater control over the rebuild, albeit with greater public accountability. Continue reading