NASSAU, Bahamas, CMC – China says the construction of a hospital in The Bahamas is a “livelihood project financed through a highly preferential loan,” dismissing an earlier call by the United States for Nassau to rethink its decision to go ahead with a multi-million dollar loan agreement for the construction of the new hospital in western New Providence.
“It would be better to look at other financing options that adhere to international norms. President Trump believes in fair deals that benefit both nations, and the United States is committed to being the economic and security partner of choice,” the US Ambassador to the Bahamas, Herschell Walker, said in a statement.
“We stand ready to work with The Bahamas to help secure a better deal—whether from private or public sources – to provide the healthcare infrastructure Bahamians deserve,” he added.
But in a statement, the Chinese Embassy here said that the project “is jointly advanced by both sides based on mutual respect and friendly consultation, to improve the well-being of the Bahamian people.
“The project aligns with the healthcare needs of The Bahamas and serves its best interests,” the Embassy said, adding that Beijing’s policy is to “respect the sovereignty of The Bahamas and to support its independent choice of development paths and partners”.
“China–Bahamas cooperation involves no geopolitical calculations, targets no third party, and should not be interfered with by any external party.
“Regardless of international and regional changes, China remains committed to developing long-term friendly and cooperative relations with The Bahamas based on equality, mutual benefit, and win–win cooperation, thereby contributing to The Bahamas’ economic and social development and to the improvement of its people’s livelihoods.”
Last week, Health and Wellness Minister, Dr. Michael Darville, confirmed that, as part of its loan agreement with China’s Export-Import Bank, there is a stipulation requiring a 50-50 Bahamian-to-foreign construction worker ratio.
Last year, the government signed an agreement to borrow US$195 million from the China Export-Import Bank to cover 73 per cent of the funding for the 200-bed hospital, with the remaining funds provided by the Ministry of Finance.
A feasibility study for the hospital, tabled in the House of Assembly this week, indicates that the Phillip Davis government is examining the possibility of financing public hospitals or tertiary-level healthcare in the country through the introduction and levying of National Health Insurance (NHI) contributions.
In his statement urging the government to reconsider the loan, Walker said, “it doesn’t appear to be in the best interests of The Bahamas to submit to Chinese law and labour standards on their own soil”.
The United States Department of the Treasury, Office of Foreign Assets Control, placed the China Railway Construction Corporation on the list. Ltd., the main contractor for the planned hospital, is on its restricted investment list due to its links to China’s military-industrial complex.
Darville told Parliament that, in accordance with the agreement, China Railway Construction Corporation, Ltd. is the contractor for the project, and confirmed that the stipulated foreign-to-Bahamian worker ratio is 50/50. However, he said the government is still working to secure a better split for Bahamians.
Darville said that the Bahamas government tried to engage Washington “at the highest levels” with respect to financing of the hospital, including discussions with the US Export-Import Bank,” he said.
“While there were conversations, The Bahamas did not receive a financing response that met the scale, timing, and certainty required to advance this critical national project,” he said, adding that The Bahamas’ partnership with the US is “neither diminished nor replaced” by the agreement with China.
“The government of The Bahamas will continue to pursue practical, timely solutions that serve the best interests of the Bahamian people, guided by our national priorities, our development needs, and our sovereign right to make decisions in the public interest,” he said.
Meanwhile, National Security Minister Wayne Munroe told reporters that he now expects the United States to back its words with action by helping the country secure financing for a new prison and virtual court complex.
Munroe framed Mr Walker’s remarks not as foreign interference but as a test of American intent, saying, “I wouldn’t call it intervention, and that Walker was speaking from the standpoint of US interests.
“I’m encouraged by what he says, so I will expect that we will get a good response from American EXIM bank if we approach them for funding for the prison, because that is something else that we would be looking for funding for, and I take him at his word that the US is prepared to assist us with that.”
Last July, the government broke ground on the long-promised high- and medium-security prison, which is expected to cost US$50 million and be financed through a public-private partnership.
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