Talks are going on at a very high level between government representatives and the top officials of Skanska, the company contracted to build and deliver the new hospital. In fact, Skanska even brought officials in from abroad to take part in the discussions.

For its part, government has now brought in a British expert to help it understand the technical points being made by Skanska. This expert’s last job was to build a 1,000-bed hospital in the UK, which he finished and delivered in just three years.

Unofficial sources told The Malta Independent on Sunday yesterday that government wants to thrash out with Skanska both the issue of the deadline for the hospital’s completion and the final cost of the project. In particular, it would seem, Skanska is blaming changes in the design for the cost overruns and government wants to see its way clearly about this issue.

The hospital has been under construction since 1994, and there have been many changes, even after the 1998 agreement with Skanska.

“It is our intention to understand each other,” said a government source, admitting the two sides are still “far away”.

Government has a target date in mind and is asking if Skanska can deliver by that date.

Right now, the sources said, Skanska has slowed down its work on the hospital “to a considerable degree”: they are waiting to see the outcome of this debate and how it will affect them. Progress on the construction should resume if an agreement is reached by the two sides, the sources said.

Discussions have been described as “intense”, with meetings being held every week. Government is asking Skanska for documentation and for its part is preparing its replies to Skanska’s arguments. This will not be a short process, the government sources said, the cost of the hospital may be in the region of Lm120 million.

The discussion has already taken a month but both sides are willing to discuss and reach an agreement. Such an agreement, for government, the sources said, is by no means an agreement “at any cost”.