NASSAU, Bahamas — The Minister of Health and Wellness the Hon. Dr. Michael Darville said after three years of planning, assessments, studies, reports, private and public consultations, town hall meetings and challenges, the signing of the Framework Agreement with the China International Development Cooperation Agency will bring the Bahamas Government one step closer to the finalization of a loan agreement with the Export-Import Bank of China (China Eximbank) and the Ministry of Finance to construct the New Providence Specialty Hospital.
“In the first feasible studies submitted in early December 2022 to the Chinese Government, my Ministry proposed to borrow US$290 million, but after an in-depth technical review of that report by Chinese structural engineers, it was recommended to use reinforced concrete instead of fire-resistant steel framing in the design,” the Health Minister said during the signing ceremony at the Office of The Prime Minister on Friday, July 11, 2025.
“These structural changes along with other cost savings measures resulted in an overall net savings of $22 million for the (Bahamas) government, reducing the cost of the project from $290 million to $267 million US dollars.”
He said after further negotiations with the China International Development Cooperation Agency, the final financial framework agreement verified that 73 per cent or $195 million of the project cost will be funded by the China Eximbank and the remaining 27 per cent of the project cost or $72 plus million will be funded locally and/or internationally by the Ministry of Finance.
The Health Minister said the China Eximbank loan will carry a two per cent interest rate over a 20-year period, inclusive of a five-year grace period.
He said it is important to emphasize that the environmental clearance for the project has already been granted by the Ministry of the Environment and the Environmental Certificate is already in the Ministry’s possession.
“My Ministry is finalizing the tender process for the site preparation, and on completion, a contract will be awarded and land clearing will begin in a matter of weeks.”
The Minister explained that the hospital is an investment in modernizing the country’s healthcare infrastructure to meet the growing medical needs of the people.
He noted that for decades, studies including the 1999 Dorsett Report, have highlighted limitations that presently exist at the Princess Margaret Hospital (PMH) and the logistical nightmares associated with hospital expansion at the current location.
“The on-going upgrades at PMH Accident and Emergency clearly demonstrates the challenges we currently face with operating and renovating clinical spaces and the serious disruptions associated with patient care.”
The Minister explained that the proposed new hospital site is located on 50 acres of virgin land in Central New Providence and offers the space to build a sustainable eco-friendly medical campus with room for expansion.
He said the proposed 200 bed hospital will feature specialized maternal and pediatric wards, emergency intensive care services, diagnostic lab facilities, surgical suites, a new reference morgue designed for mass casualties, infectious disease isolation units and lots of green spaces for holistic healing.
The Health said upon completion, the maternal and pediatric and adolescent services at PMH will be relocated to the new facility and the spaces left behind at the hospital will be renovated to expand adult medical and surgical services including dialysis and subspecialty care.
Ambassador of the People’s Republic of China to The Bahamas Her Excellency Yan Jiarong said the hospital project is another excellent demonstration of the growing China and Bahamas relations under the vision of building a community with a shared future for mankind as proposed by the Chinese President Xi Jinping, and also with direction and guidance of the Bahamian leadership.
