Health

New Hospital Labor Ratio Stands At 50/50, Government Working Out Better Deal

NASSAU, BAHAMAS – The Davis administration taking the first step in finalizing an agreement for a $267M hospital in New Providence.

Published

5 months ago

July 11, 2025

Berthony McDermott

NASSAU, BAHAMAS – The Davis administration taking the first step in finalizing an agreement for a $267M hospital in New Providence.

Health and Wellness Minister Dr. Michael Darville explained that an environmental clearance for the project has already been granted by the Ministry of Environment, and that the certificate is with the Ministry of Health and Wellness.

When asked about the issue of Bahamian to foreign workers, Dr. Darville says it’s still being worked out despite the initial agreement being signed Friday morning.

Dr. Michael Darville – Minister, Health and Wellness

“The labour component, we’re still in negotiations. We’re presently at 50/50, and we’re trying to see if we can do a bit better.”

I’m about to do a communication in parliament about the entire project, and so we will go into all of the details as it relates to the labour component and all of the necessary questions that may be arise,” he said.

Typically there’s a “70/30” ratio requirement in construction projects, particularly those involving foreign investment, where 70% of the workforce is intended to be Bahamian and 30% non-Bahamian.

Most recently, there were workforce ratio “conflicts” with the $250M Pointe development during its construction in 2019.

As it relates to this latest project, construction is expected to last up to 36 months and according to Darville, after the ground breaking, mechanisms will be put in place to expedite the process.

Details of the loan provided by Dr. Darville shows the final financial agreement verified that 73 percent or $195M of the project cost will be funded by the China EXIM Bank and the remaining 72+ million will be funded locally, internally, or both by the Ministry of Finance.

“The Chinese export and import bank loan will carry a 2 percent interest rate over a 20-year period, inclusive of a five-year grace period,” Darville said.

The promise of a new hospital facility was laid out in the Progressive Liberal Party’s blueprint for change ahead of their 2021 election win.

Prime Minister Philip Davis, says the agreement represents a mutual respect between both nations. Leaning on the decades-long challenges in healthcare, Davis stressed the urgency of this new facility.

Right Hon. Philip Davis – Prime Minister

“The Bahamian people deserve a healthcare system that works, one that meets them where they are, and one that lifts the standard focus for everyone. With our Chinese partners, we are creating new opportunities to deliver on that promise,” Davis said.

The new facility will house the maternal, pediatric, and adolescent service along with a 200-bed capacity.

The Chinese ambassador to The Bahamas says the project will play an important role in improving livelihood and boosting local economic development.

Yan Jiarong – Ambassador, Chinese Embassy

“The hospital project is also an excellent result of China-Bahamas corporation, and I should say it’s a great joining venture,” Jiarong said.