The Ministry of Health (MOH) has signed a Memorandum of Understanding (MOU) with Kramer Asia Pacific Ltd to begin upgrading the Vanuatu National Hospital (VNH) Wastewater Treatment Plant (WWTP).
The agreement, formalized yesterday, will run for 43 months—three years and seven months—and marks a key step toward resolving a long-standing challenge at VNH.
Minister of Health John Still Tari Qetu described the signing as an important milestone, saying the contract addresses a persistent problem at the hospital and is vital to safeguarding both the facility and the surrounding environment. “This agreement represents the Ministry’s commitment to protect public health, strengthen hospital infrastructure, and provide sustainable solutions,” he said.
Kramer Asia Pacific Director Philippe de Greslan highlighted the company’s expertise, mentioning that wastewater treatment is his specialty. He explained that wastewater specialists are rare in the Pacific, but his training in New Caledonia equips him with the knowledge to ensure the plant meets international quality standards. De Greslan described the hospital’s WWTP as “a little bit of my baby” and pledged to make the facility reliable.
He added that Kramer initially proposed two options but ultimately recommended maximizing existing infrastructure to improve efficiency and reduce costs. De Greslan assured leaders that the plant can continue operating during the upgrades and confirmed that Kramer will provide training for local operators over the three-year contract to ensure the system is sustainably managed in the future. “This is now my responsibility, and we will be working here every day to make sure the system is functioning and well maintained,” he said.
For many years, VNH has struggled with serious wastewater and sewage issues, which posed risks to patients, staff, and the wider community. The Ministry has long called for a solution to protect health services.
Minister of Climate Change Ralph Regenvanu welcomed the signing, noting it is a moment he and his ministry had anticipated for a long time. He said untreated wastewater flowing into the lagoon had prevented authorities from enforcing national water quality standards. “We wanted to penalise polluters, but people would always point to the hospital,” he explained. “Now, with this solution in place, we can finally enforce water quality standards and hold everyone accountable.”
The project’s background spans several years. Between 2020 and 2021, a technical assessment identified critical faults in the WWTP, leading to VT28.25 million in funding support from the Government of China. However, progress was delayed in 2022 due to the COVID-19 pandemic. In 2023, Kramer Asia Pacific Ltd conducted a new assessment, confirming earlier findings and noting further deterioration. This led the MOH, in collaboration with the Ministry of Climate Change and the Department of Environment, to develop a new policy proposal worth VT44.28 million. With additional contributions, the total budget rose to over VT72.5 million.
Despite a Request for Tender issued in 2024, no bids were received. Later that year, Kramer Ausenco conducted a detailed site audit and proposed several options. The Ministry endorsed an integrated approach—diverting sewage from the Emergency/Outpatient building to the old system while upgrading and expanding the existing WWTP. By January 2025, stakeholders endorsed the plan, the Central Tender Board approved sole sourcing Kramer Asia Pacific Ltd, the Attorney General cleared the contract, and the Council of Ministers gave final approval.
Minister Qetu thanked Kramer Asia Pacific Ltd for its support, as well as Minister Regenvanu and Leader of the Opposition MP Ishmael Kalsakau for their help in securing funding. He also acknowledged contributions from the Chinese Government, the Vanuatu Government, and VNH, which collectively provided over VT103 million for the project.
Special thanks were extended to the Director of Hospital Services, the Assets Management team, the Central Tender Board, and the State Law Office for their efforts in bringing the contract to this stage. “This contract ensures that VNH can move forward with confidence in solving its wastewater challenges and safeguarding vital health services,” the Minister concluded.
Director de Greslan, speaking on behalf of Kramer Asia Pacific, expressed his honour at being part of the signing. He reminded attendees that Kramer has operated in Vanuatu for 41 years and remains committed to the country for as long as needed.
