An "uncomplicated" amendment to the law aimed at giving reassurance to companies bidding to build Bermuda's new hospital has been passed by senators.

Attorney General Kim Wilson told the Upper Chamber on Monday that the Government Loans Amendment (No. 2) Act would confirm that Government could guarantee the debts and other obligations of third parties.

"The sole purpose of this bill is to provide the level of certainty sought by bidders on the KEMH (King Edward VII Memorial Hospital) Redevelopment Project; nothing more, nothing less," she said. "This amendment is uncomplicated and will provide the bidders on the KEMH Redevelopment Project with the level of certainty they require in order to submit their bids in a timely and assured manner."

Opposition Senate leader Michael Dunkley said the Island's debt kept getting larger and larger and Government needed to clarify what it included. "Government will be coming back, perhaps not now but at the next Budget, to raise the debt ceiling again," he claimed. "I'd like to know where is it going to end?"

Independent senator Joan Dillas-Wright agreed, saying she supported the new hospital plan but wanted to know if future generations would have to pay for it.

Sen. Wilson said: "This scenario kicks in only in circumstances where the Bermuda Hospitals Board has to borrow money. If they have to borrow money, Government will guarantee that."

She said if the board could finance the project without the need to borrow, there would be no need for Government to guarantee any debt.