UAE investment in Ctg hospital project in limbo for 8yrs

The United Arab Emirates (UAE) expressed its willingness to finance a multipurpose specialised state-of-the-art hospital and nursing institute in Chattogram's Rangunia about eight years ago, but the government is yet to secure the investment because of a reported lack of preparation on the part of the health directorate.

Against such a backdrop, the two countries are going to hold a meeting to review the progress of the preparatory work for the construction of the proposed healthcare facility – to be built on a 110-acre land along the River Karnaphuli – featuring separate units for cancer, kidney, mother and child, heart, and thalassemia patients.

Discussions on UAE investment in the hospital sector of Bangladesh will get importance at a Joint Economic Commission (JEC) meeting slated for Monday, said officials at the Economic Relations Division (ERD).

Finance Minister AHM Mustafa Kamal and UAE Minister of State for Foreign Affairs and International Cooperation Ahmed Ali Al Sayeh will lead their respective sides at the meeting in Dhaka.

Speaking on the UAE investment in the proposed hospital project in Rangunia, ERD officials have said a preliminary development project proposal (PDPP) is needed to secure funding from any development partner.

The PDPP contains a detailed discussion and the cost of the project, on the basis of which the promise of financing from development partners is realised. But it was not possible to finalise the UAE funding as the health ministry did not submit an initial project proposal, they said.

"Even though the Heath Services Division was requested to send a PDPP over the ensuing JEC meeting, it has not been received yet," said an ERD official, adding whether the PDPP would be available before the JEC meeting remains uncertain.

The Health Services Division in August this year formed a committee, headed by the director general of the health directorate, and asked it to submit a full and detailed report to the Health Services Division within 20 working days after inspecting the proposed hospital area in Rangunia.

At the same time, the health directorate was asked to send a PDPP of the project to the Health Services Division within a month but the directorate failed to comply with the instruction.

Md Helal Uddin, additional secretary (Planning Wing) at the Health Services Division, also blamed the sloth in the work of the health directorate for the failure to prepare a PDPP for the proposed hospital in Rangunia.

"But there are some problems in the activities of the development partner as well," he said, adding it was observed that the UAE usually sends a letter once in a couple of years but there is no follow-up.

"The UAE did not say how much money it would invest in building the hospital in such a vast area. This has also created complications in formulating the plan properly or preparing a PDPP," he added.

Asked, Professor Dr ABM Khurshid Alam, director general of the Directorate General of Health Services, told The Business Standard, "The Covid-19 infection rate was much higher in the country when we were asked to formulate the PDPP. We could not visit Chattogram as we were busy dealing with the pandemic."

A DPP cannot be made without visiting the project area, he mentioned, adding, "But now that the Covid situation has improved, officials from the planning wing of the health directorate and the ministry will visit the hospital this week. Then, a PDPP will be prepared."

According to the health directorate, initially there will be a 1000-bed hospital. The number of beds may be increased later. The hospital will operate for at least two years with UAE funding. Then it will be handed over to the Bangladesh government.

Khurshid Alam said indecision about the appointment of doctors was another reason for the delay in the formulation of the PDPP.

"Our proposal was to appoint government doctors on deputation to the hospital so that no movement can take place protesting the appointment, after the hospital is handed over to the government. If the manpower is not recruited by the government, there will be a lot of problems in recruiting or paying them once the UAE hands over the hospital to the Bangladesh government."

The UAE authorities are yet to send a response to the proposal of the health directorate, said Khurshid Alam. "Nonetheless, we will visit the place this week and take the work forward as far as possible."

 In 1989, the then president of the UAE, Sheikh Zayed bin Sultan, was presented with 110 acres of land in the Pomra area of ​​Rangunia when he was on an official visit here at the invitation of his Bangladeshi counterpart.

Later, in 2013, the government requested the UAE to finance the construction of a world-class hospital on the land and the UAE also gave its consent. High-level delegations from the UAE also visited Rangunia several times.

Apart from this investment in the health sector, the approaching JEC meeting may also discuss various issues including cooperation in bilateral trade, economic development and commerce, labour and employment and consular relations, cooperation in civil aviation, tourism and culture, investment opportunities, cooperation in education, science and technology, according to ERD officials.

Among these, investment and financing on PPP (public-private partnership) projects will get special importance, they added.

Apart from ERD officials, representatives of ministries concerned, various government agencies, and the business community will be present at the meeting, continued the ERD officials.

An economic zone will be set up in the Matarbari area of ​​Cox's Bazar for investors from the UAE to attract investment from the Gulf country, sources said, adding the two sides have also inked a memorandum of understanding in this regard.

Dubai-based firm DP World is investing in a PPP project to set up Matarbari seaport in the same area. DP World is also investing in a PPP project to set up an inland container depot (ICD) in the Dhirashram area of ​​Gajipur.

The JEC meeting will also discuss further expansion of UAE investment in Bangladesh's infrastructure sector, including transport, railway and ports, said ERD officials.

The ERD officials further said that the UAE is the third-highest source of Bangladesh's inward remittance but workers are not employed in that country with work visas. Migrant workers apply for a work visa after going there on a tourist visa, they added.

To get out of this situation, Bangladesh will propose to introduce the process to issue work visas directly.