By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

A Cabinet minister yesterday said the Government rejected $90m in hospital financing arranged by its predecessor because it was “tied up” with other uses.

Dr Michael Darville, minister of health and wellness, clarified that the funding obtained by the former Minnis administration for upgrades to the Princess Margaret Hospital (PMH) and the Rand Memorial Hospital “was tied up with other loan facilities” after the Opposition’s leader argued the Government had given no explanation for why the loan facility was rejected.

He also argued that no structural drawings for the proposed new four-storey tower at PMH, and Rand Memorial Hospital, were found when the Davis administration took office and it decided to approach the issue anew.

“First of all, when we came to power in 2021, funding was supposedly put aside for a four-storey tower at the Princess Margaret Hospital for maternal and child care,” Dr Darville said. “When we began to investigate the funding, which was by way of the Bank of Santander, we realised the funding was not specifically for the expansion of the Princess Margaret Hospital.

“We found out that the funding was tied up with other loan facilities, and so it’s very unfortunate and completely inaccurate to say $90m was set aside for the hospital. That is not true. Ninety million dollars was, by the way of the Bank of Santander, incorporated other funding mechanisms for small and medium-sized businesses.

“Secondly, when we came to office, we found no structural drawings. Only thing we heard of was this rendering of this four-storey complex. So, we contacted Bank of Santander and tried to renegotiate the loan facility to exclude the small and medium sized businesses that were incorporated in the loan,” Dr Darville added.

“And we were instructed by the Bank of Santander to redirect the loan back and start a new negotiation process. And so that part is a bit incorrect. But what the former Prime Minister (Dr Hubert Minnis) presented was just some basic rendering. So there was really no structured plans for the construction of this four-storey tower.”

Dr Darville’s comments cake after Michael Pintard raised concern over the Davis administration’s decision to borrow funding for New Providence’s new $285m hospital from China Export-Import Bank, a lender owned by the Beijing government.

“What makes this decision even more troubling is that under the Free National Movement, $90m had already been secured for a five-storey modern extension to Princess Margaret Hospital and upgrades to the Rand Memorial Hospital,” Mr Pintard said.

“A comprehensive master plan, developed through careful research, technical study and extensive consultation, had been completed and approved as the road map for the way forward. The project was ready to begin, with financing secured at an affordable 3 percent interest rate and advanced designs already in hand. Yet, without explanation, the PLP government cancelled the project and returned the funds.

“The decision by the PLP government to borrow hundreds of millions from the People’s Republic of China at far greater long-term cost to the Bahamian people, along with labour arrangements that guarantee 50 percent construction jobs for Bahamians and the remaining 50 percent to be filled by Chinese workers, has raised serious concerns regarding both the funding terms and the limited employment opportunities for Bahamians.”

Mr Pintard pointed to concerns from neighbouring residents who, at a recent Town Planning meeting, voiced their disapproval of Perpall Tract as the new hospital’s location due to the area being prone to flooding. Members of nearby communities believe the hospital will allow for more flooding to flow toward their communities.

“Fiscal prudence and environmental responsibility must go hand in hand,” Mr Pintard said. “The Government owes the Bahamian people a transparent explanation on how it will fund, staff and maintain both the new and existing hospitals, and how it intends to protect surrounding communities from worsening flood risk. Until then, these projects appear less like progress and more like pre-election pageantry, expensive symbols built on weak foundations.”

Dr Darville, stating that the Government is getting ready to break ground on the second New Providence hospital, said mitigation efforts will soon be put in place to combat flooding. “I went to the Town Planning meeting, and there seemed to be this odd concept that the flooding that existed in the Perpall Tract area, the hospital will add to it,” he added.

“That is incorrect. The hospital is not in the well fields, and the hospital will add value, as clearly outlined in our plan, where there is a drainage mitigation strategy for the hospital itself. I assure you that this hospital, once constructed, would add value, and there is a mitigation plan to assist with the flooding issues that currently exist in the well fields that have affected some of the residents.

“Most of it is directly related to the fact that they are poorly maintained. And so, soon, we will be releasing a strategy on how to assist the residents with flooding in the area and a mitigation strategy for that. But you cannot tie that into the hospital because they are are two separate things. The hospital will add value and assist the Government as it relates to the mitigation effect for flooding in the Perpall Tract area.”

Mr Pintard also challenged how the Government, which is currently struggling “to maintain its existing hospitals, in New Providence and Grand Bahama, intends to fund and staff new ones, plus all the clinics”.

“Currently, there is already a critical shortage of 300 to 400 nurses across The Bahamas, and shortage of medication and medical supplies, mainly due to payment issues,” Mr Pintard said. “The Government had the opportunity to transform and dramatically expand existing facilities in Grand Bahama and New Providence. Yet instead of fixing what exists, this government is borrowing heavily to construct new facilities without a clear plan for sustainability.”

Dr Darville replied: “The Government borrowed $90m from CIBC, and we are about to start the distribution of that loan facility that was specifically earmarked for the Freeport Health Campus, the renovation of the kitchen at the Princess Margaret Hospital, the renovation of the legacy unit at the Princess Margaret Hospital, and the renovation of the operating theatres, particularly the flooring. So it’s clearly spelled out what this $90m would be used for.”