Although justifying the leasing of the Sussex Street bond for the storage of drugs, the Cabinet Sub-Committee that reviewed the deal has recommended that government should try to negotiate a reduction of the agreed $12.5M monthly rental fee.
According to the sub-committee’s report, which has been seen by Stabroek News, the lease should be revisited and strengthened and if there is a refusal by Linden Holding Inc, government should give a year’s notice of a termination of the lease and build its own facilities in the intervening period.
“With respect to the rental sum of $12,500,000 it is the sub-committee’s considered opinion that the value should be re-assessed as it is likely that a similar facility could be obtained at a lower rate,” the report says.
It adds that the general terms of the lease “are not altogether unfavourable” to the Ministry of Public Health as the lessor is obligated under the agreement to maintain the facility at a standard that will meet national and international specifications for the stoprage of drugs and pharmaceuticals.
