CURRENT EVENTS
The article is about the rise in estimated costs of establishing a new maternity hospital and cancer center in Aberdeen. The value as according to the article, is believed to have risen by 60milion euros from the original cost of 163.7 million euros. The new costs have delayed construction to pave the way for assessment. Once the business case containing the report with increased costs has been submitted and granted approval, the plans for the main program is expected to kick off. The article demonstrates that the increase in charge has been as a result of NHS Grampian going out to the market from which they have received the newquotation. The news article goes ahead to claim that the original cost plan was inadequate and did not reflect the complexity of the project despite just being an estimate. The cost issue is expected to hold the project until 2023 when it will be resumed.
The rise in the cost of the new proposed maternity hospital and cancer is likely to interfere with the governments’ resources allocation policy. It’s clear that if the business case gathers approval, additional revenue from the government treasury will have to be reallocated to the project leaving other sectors with less capital.As a result, the government’s decisions on spending and taxation will be altered by a single project. Besides, pausing of the project interfere the economic development as fewer projects are left running. Don't use plagiarised sources.Get your custom essay just from $11/page
The article makes mehave a different thought on government allocation of resources to a project. At first, the government was ready to invest in the project without proper investigation of the cost, an aspect that is revealed when the cost goes up. The original costs were underestimated, and thisraises the question of whether the government genuinely assess a project before initiating the main program.
The article makes mehave a different thought on government allocation of resources to a project. At first, the government was ready to invest in the project without proper investigation of the cost, an aspect that is revealed when the cost goes up. The original costs were underestimated, and thisraises the question of whether the government genuinely assess a project before initiating the main program.
The article makes mehave a different thought on government allocation of resources to a project. At first, the government was ready to invest in the project without proper investigation of the cost, an aspect that is revealed when the cost goes up. The original costs were underestimated, and thisraises the question of whether the government genuinely assess a project before initiating the main program.