Diversion of Specialty Hospital funds

Indian High Commissioner still awaiting new project proposal

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 International 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.

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.

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.