The Health Ministry said this evening that the final cost of Mater Dei Hospital had exceeding the capping announced in 2005 because of additional government requirements, mostly as a result of developments in the medical sector since the agreement was signed.

The 2005 agreement with Skanska had put the final cost of the hospital at €336.69 million.

The final cost when the hospital was completed was €343.92.

The differences stemmed from exclusions in the 2005 agreement (totalling €2.3 million and works for the hospital to offer more services (€4.85m).

The only remaining payment due to Skanska is €847,288.

The ministry, which was reacting to comments made this morning by Joseph Muscat, said it was significant that while other countries were cutting back their spending, even on health services, the Maltese government was investing more on higher quality hospital services.