Even though the Chinese government provided a loan of about $1 billion for the construction and outfitting of the Children’s Hospital, in Couva, the T&T government had to pay import duties, Value Added Tax and other associated costs on equipment, material and other items which were imported from China and other countries for the project.
In response to queries from this newspaper, the Chinese Embassy in T&T said claims made by Finance Minister Colm Imbert during the Budget debate were being observed. Imbert said then that the Government plans to probe $239 million spent by the former People’s Partnership government on the hospital.
The Finance Minister said it was his understanding the project was financed through a government-to-government loan facility with the Chinese government and, usually, there was no obligation for the T&T government to spend money on the construction of the hospital.
The embassy stated that “under the request of the Government of T&T, the Couva Children’s Hospital, as a project for people’s health and well being, was built by Shanghai Construction Group in cooperation with the government.
“It’s aim was to improve people’s well being and solve the difficulty of medical services for local residents.
“For this project, the Chinese government provided concessional loans, in the amount of one billion yuan (about TT$1 billion).
“According to the agreement between the two countries concerning the provision of the concessional loans, the import duties and VAT et cetera, were not to be included in the use of the loans.”
Asked for an elaboration, Yandi Tang of the embassy’s communications department, said these import duties and taxes were to be paid by the T&T Government on equipment, material and other items for the hospital that were imported from China and “all over the world.
“That was the agreement,” Tang said.
Tang said he could not say at the time how much the import duties and taxes amounted to. The embassy said in strict accordance with the requirements of the contract, Shanghai Construction Group carried out the construction of the hospital with good quality and quantity and on time.
The Chinese government has enhanced cooperation with the T&T government on similar people projects in recent years to promote friendship and economic and trade exchanges between the two countries, the embassy said. The embassy promised to also work with the People’s National Movement government and provide financial and other support, if needed.
“In the future, to match the blueprint put forward in the new budget, China will develop comprehensive cooperation with the new government on the basis of existing cooperation and will be willing to provide all kinds of support, including finance and technology.”
Fuad: Stop playing politics
Former health minister Dr Fuad Khan is threatening to fast on the steps of the Children’s Hospital if the Government does not open it. “And I will bring people with me, mothers, children, crying babies. No government should play politics with people’s health.”
Asked about rumours the Government plans to use the building for other purposes, Khan said, “They can’t do that. I will protest.” He said the children’s ward and radiology unit have been outfitted and are ready for opening. “All you have to do is put sick children inside.”
He said the Government could start by opening the radiology unit, which is an out-patient service and will not need much staff.
Responding to criticisms from the PNM that the former government had no staff to operate the Children’s Hospital, he said he had it all worked out when he was health minister. There are no shortages in the health sector, contrary to what is believed, he said. “I had showed where staff would come from in surpluses around the system.
“Of course, we were also planning to bring in some specialists from Cuba and the Phillipines. We had planned to put a team in charge to start the head hunting.” Khan said if the Government does not know what to do, he is open for consultancy.
As for additional money spent by the last administration on the hospital, he said the Chinese government only gave them $1 billion, and in parts. “We had to find $500 million to start the process while we were waiting on the money. Imbert (Finance Minister, Colm Imbert) was wrong when he said the Chinese government funded the whole thing.”