Specialty Hospital back on … Guyana, India in new financing deal
By Ariana Gordon, November 11, 2015, Source
GOVERNMENT will be going ahead with construction of a multi-billion-dollar specialty hospital here, but under a new agreement with India.
The new arrangement would see unused funds from the original deal being channelled towards the upgrade of three of the country’s regional hospitals, while a new pact will be negotiated for the completion of the medical facility.
On its assumption to office, the David Granger-led administration had indicated that it would prefer the funds for the hospital be used for primary healthcare delivery.
Minister of Public Health, Dr. George Norton, told the Guyana Chronicle yesterday that talks are continuing on the specialty hospital between the governments of Guyana and India. Government, the minister said, received what can only be described as “an offer of a lifetime”, whereby the Government of India will permit the Government of Guyana to use the remaining US$14M from the Specialty Hospital Project towards the upgrading of the West Demerara, Suddie and Bartica Regional Hospitals, while still being able to benefit from funding for a new Specialty Hospital.
Dr Norton explained that the approach taken by the Government of India is one that has the potential of benefiting all Guyanese. Put simply, he said what they’re actually saying is: “Use your money to do your primary healthcare system in your three hospitals, but we will continue to do the Specialty Hospital.”
CHANGE IN SCENARIO
Noting the radical change in scenario, Dr Norton said, “It is one we can work with; it is one we think decisions can be made in the best interest of the public.
“It was offered to us; we identified three hospitals: West Demerara Hospital, Suddie Hospital and the Bartica Hospital, which are all regional hospitals that need to be upgraded, so that we could take off the load from the GPHC. And that was agreed to by using the rest of the money.”
Funding for the construction of a Specialty Hospital was part of an agreement between the Governments of Guyana and India, through the Exim Bank of India. Some US$18M was allocated to the project through a line of credit facility to build the hospital.
US$4M was expended by Surendra Engineering Company Limited on preliminary works associated with the construction of the hospital.
ORIGINAL DEAL
Back in 2012, Surendra was awarded a multi-million-dollar contract to design and build the hospital at Turkeyen, on the lower East Coast, but its alleged involvement in criminal activity saw the former PPP administration terminating their agreement.
The company was flagged for its inability to maintain timelines; to account properly for funds provided; as well as providing a forged document that allegedly originated in Trinidad and Tobago.
The current administration, while in opposition during the 10th Parliament, criticised the former administration over the Specialty Hospital, citing that enough information was not provided on how the Guyanese people were to benefit by it.
$1.25 billion was set aside for the hospital in the 2013 Budget, but was chopped by the then Opposition. Some $34.4M was allocated to the hospital as part of a supplementary budget.
Asked whether government was forced to renegotiate with the Government of India on the construction of Specialty Hospital, Dr Norton said:
“I would hope we are not forced, because it would not be smooth sailing. I don’t think anything should be forced on us.”
OPTIMISM
Dr. Norton is optimistic that ongoing discussions with the Government of India will bear fruit, as more information would be forthcoming on the construction and management of the hospital.
“I think that regardless of who is giving it to us,” he said, “that is something that should be making headlines with all details: Who is going to come and work; if Guyanese are going to be trained; if Guyanese people will have access to all facilities free of charge; things of that nature.”
Asked why government has changed its mind on the specialty hospital, Dr Norton said government was never opposed to having such a hospital here, but had rather felt at the time that it was not a priority.
“We have a situation where we can hardly have a well-functioning diabetic foot disease clinic…My point is primary healthcare is important; primary healthcare is that which we need to stop the high rate of maternal mortality and infantile mortality…hypertension, diabetes and the like; that is what we need the primary healthcare to do. So, when we were confronted and asked what you plan to do, we said, ‘Okay, we would love to spend this money on the primary healthcare system.’”
Though he could not state when the negotiations on the Specialty Hospital would be completed, he is optimistic that things will be in train soon.
“Here again,” he said, “it is an offer that is being done at a government-to-government level. These things do take time; it is not so much of a Ministry of Public Health, but it is a Ministry of Foreign Affairs…There is no dealing with foreign companies from the Ministry of Public Health.
