The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

HEALTH Minister Dr Michael Darville said the Minnis administration negotiated a multi-million-dollar deal for hospital upgrades in which the loan was drawn down before construction began.

Former Prime Minister Dr Hubert Minnis, however, said his administration approved a structure that would allow construction to finish much quicker than usual.

During the budget debate earlier this year, Dr Minnis said funding for upgrades to Princess Margaret Hospital would be facilitated through a loan agreement between the government and Banco Santander. He has emphasised the low interest rate of the loan.

He supported the loan during his contribution to this week’s debate on the supplementary budget in the House of Assembly.

Dr Darville, nonetheless, tabled the agreement with Banco Santander yesterday.

He said: “The agreement did confirm, sir, that the first utilisation of the loan shall be made in respect of acting strategic plans for the repairs of clinics and hospitals. Nothing in the report spoke about Royal Caribbean International, telemedicine or business incentives as outlined by you.

“In section four, sub-section six repayment of the loan confirmed the first of the 13 equal instalments of the sum of $8,867,168.40, with the first payment due on April 28, 2020. I support the possibilities of low interest rates but the devil is always in the details. What is irregular about this deal is that the loan was fully drawn down before construction began and a portion of the principal combined with the interest will be paid before you get the first block in the ground.

“What is so vexing is the fact that the member for Killarney left little or no records behind in my ministry to facilitate the proper analysis of this transaction. So, for the sake of transparency, sir, I am asking you to lay in this House the additional information and reports about the deal and other workings of the loan so that we at the Ministry of Health and Wellness can complete the assessment in the appropriate time and we can make a determination, should we go or not go. If you have this information, give it to me, give it to your boy, so I can do some things.”

Dr Minnis later said the structure of the loan is different from the usual.

“We (drew) down $46,847,315…the PHA drawdown was $21m and the SBDC was $20m. We did our second drawdown on the 30th of June of this year and that was $68,400,000.

“That was essential because we are doing what you call design-build, not the standard design, bid then build which would take three to five years. Yes, utilising that system, it would appear that money is sitting and not being utilised. However, if you do design build, design and move along, which means you’ll finish the complex and the changes in less than 50 percent of the time that you would have done had you used the standard design bid build and that’s why the money was drawn down. But the point is the money was still loaned at an interest rate of 1.89750 percent, that’s the point.”

In May, Dr Minnis said his administration would invest $100m in upgrades to Princess Margaret and Rand Memorial Hospitals as part of a project that was to be pursued at an accelerated pace over the next 18 to 24 months.

This $100m investment included $70m for PMH and $19m for the Rand.

The then-Prime Minister said both facilities would be upgraded with “new modern multi-storey towers that will house the most cutting-edge equipment, expand their footprint, provide additional bed space and enhance day-to-day operations.”