Guam – The Guam Economic Development Authority [GEDA] received 1 bid in response to their emergency request for a lender to loan up to $25 million dollars to Guam Memorial Hospital.
GEDA initiated an emergency procurement last Friday by issuing “Requests for Proposals” [RFP’s] seeking potential lenders for the Hospital which owes $22 million dollars to various vendors.
The bidding clsoed today [Tuesday] and GEDA’s Communications Manager Rita Nauta says only 1 bid was received. She could not disclose who. However Governor Camacho last week said he expected it to be the Bank of Guam.
In an email to PNC News, Nauta said that “As part of the procurement process, negotiation is underway, and should agreement of terms be reached, GEDA will present a recommendation to the Board on Thursday, December 16.”
GMH wants a swift response from the GEDA Board so that the funds are available to the Hospital by next week, Tuesday December 21.
GMH Spokesman Connor Murphy told PNC News “We definitely want to get this moving as quickly as possible because we can’t wait very much longer for some significant cash to come into the hospital to keep us operational.”
Murphy said the hospital does not want to borrow the full $25 million dollar authorized.
“We have asked for the ability to be able to borrow up to $25 million. That doesn’t mean we’re going to take out the whole loan all at once. We’ve asked for the option to be able to take out multiple loans adding up to $25 million .. so basically once we get the loan then we’ll take a look at how much do we really need and definitely borrow as little as we need.”
Murphy also expressed annoyance that the hospital has not yet received the $1 million dollars that the department of interior promised after GovGuam declared a fiscal emergency at the hospital.
“DOI money? We’re still waiting on it from the feds? The declaration of emergency was done on December 1st. Personally its kind of ironic that DOI requested that we declare a state of emergency but they’re not treating it as an emergency.”
GMH owes $21 million dollars to various vendors.Murphy said that the amount of money they borrow will be reserved to pay those vendors. However the $1 million dollars expected to be released by the Department of Interior will go towards the immediate purchase of supplies and medicines for the hospital.