Indian High Commissioner still awaiting new project proposal 

Indian High Commissioner Venkatachalam Mahalingham

Diversion of Specialty Hospital funds 

Some two months after the Government of Guyana was told by the Indian Government that they would have to submit a new proposal for the primary health care improvement project, which will use the funds from the Specialty Hospital Project, the Indian High Commissioner to Guyana Venkatachalam Mahalingham has said he is yet to receive the proposal from Government.

Speaking to Guyana Times on Wednesday, the Indian High Commissioner stated that he has had previous talks with the Government on the matter but there has been no update as of lately.

Public Health Minister, Dr George Norton

Meanwhile, in an interview about two weeks ago, Public Health Minister, Dr George Norton told this newspaper that Government was able to acquire the approval of the Indian Government to divert some US$14 million from the Specialty Hospital Project into primary health care. This will see modernisation and rehabilitation works being done at three major secondary hospitals in the sector – the Bartica Hosptial, the West Demerara Regional Hospital and the Suddie Public Hospital.

However, before the work can commence, Government was informed that they need to design a project proposal to be submitted to the Indian Exim (Export-Import) Bank for the funds to be redirected into this new project. According Dr Norton, Government has since appointed consultants to conduct a study and an evaluation of the three projects.

“We have started this and as soon as this process is completed, we will present the information to the Indian Government,” Minster Norton stated. The Public Health Minister pointed out that he cannot say when this process is expected to be completed but noted that the proposal will be presented to the Indian Government early next year.

Back in June, the A Partnership for National Unity+Alliance For Change (APNU+AFC) coalition had announced that it will be scrapping the Specialty Hospital project initiated by the previous Administration and divert the remaining US$14 million into the primary healthcare sector.

However, the Indian Government had objected to the redirection of the funds approved for the construction of a Specialty Hospital, insisting that the new Administration would have to request a new line of credit to carry out those plans.

Finance Minister Winston Jordan had previously explained to this newspaper that they were informed by Indian High Commissioner that the approach the Government of Guyana had taken was against the rules and procedures of the Exim Bank of India.

“He (Mahalingham) said that we cannot use the funds from the Specialty Hospital Project for any other projects than what it was intended for, even if the project is in the same health sector. So now we have to close that line of credit and make a request for a new one to fund the primary health care improvements, which is of priority for us,” the Finance Minister had stated.

Meanwhile, High Commissioner Mahalingham had previously indicated to the Guyana Times on several occasions that the funds are available for Guyana, noting that his Government is just awaiting the new project proposal from Guyana to fulfil the necessary procedure before releasing the funds.

The previous People’s Progressive Party/Civic (PPP/C) Administration had entered into an agreement with the Indian Government to construct the Specialty Hospital, with a line of credit granted by India to the tune of US$18 million. Some US$4 million has been already expended on certain preliminary works.

According to Jordon, Government will also have to move to close this US$18 million loan, which means that the US$14 million will be returned to the Indian Government and Guyana will only have a debt of US$4 million.

The Special Hospital was aimed at catering for complicated surgeries, ranging from heart operations, organ transplants to cosmetic surgeries. The PPP/C Administration had conceptualised project as the opening venture into “medical tourism” which is now a multibillion industry, that caters to patients from the high cost developed world hospitals. In 2012, the contract was awarded to India-based company Surendra Engineering Corporation Limited, who was tasked with designing and building the controversial facility.

The current Administration which was on the Opposition side of the House during the 10th Parliament, had heavily criticised the project. The now Vice President and National Security Minister Khemraj Ramjattan, but then leader of the Alliance For Change had represented a competing firm Fedders-Lloys in their bid to secure the contract. The PPP had brought to the notice of Parliament the clear conflict of interest but the matter was not entertained by the privileges committee in the Opposition-controlled house.

The coalition had even cut the $1.25 billion that was budgeted for the hospital in 2013. The PPP/C had only escaped with $34.4 million as supplementary funding for the hospital in the 10th Parliament only by the absence of the coalition’s Member of Parliament (MP) Volda Lawrence when a vote had been taken for the funds.

However, citing instances of alleged fraud and delays, the Donald Ramotar Administration last year announced that it had terminated the contract of the India-based company and subsequently filed a lawsuit against it for failing to honour its obligations. Government is yet to recover close to $1 billion from the company.

As against the medical tourism rationale, However, the new coalition Government said with the current state of affairs in the health sector, it is better that the construction of hospital be put on the backburner.

“The current thinking is that the monies being spent on the Specialty Hospital are better spent on the primary health care system. We have hospitals that are in need of funding including at the West Demerara Regional hospital and the hospital at Mabaruma also,” Minister of State Joseph Harmon has stated.