China claps back at US criticisms of loan to The Bahamas

China has denied claims that its decision to fund the construction of an almost $300 million hospital in The Bahamas is part of a geopolitical strategy to deepen its influence in the Caribbean.

Last week, The Bahamas and China signed a framework agreement for the construction of the new specialty hospital in western New Providence– an initiative which is said to represent continued friendship and mutual respect between the two countries.

The US$195 million loan is being provided by the Chinese Export-Import Bank at 73 percent of the total US$267 million project cost which Bahamas officials say has ‘favourable terms.’

Chinese Embassy in the Bahamas

U.S. Chargé d’Affaires Kim Furnish said that Chinese investments in the Caribbean region tend to disproportionately benefit the elite while leaving nations with unsustainable debt, incomplete shoddy projects and jeopardize their development.  

“The United States Embassy will continue to work with the Government of The Bahamas so they can make informed decisions about interactions with China,” Furnish said.

In response, the Chinese Embassy in The Bahamas issued a statement which labelled the criticism as baseless and absurd, asking, “Is there a U.S. loan proposal at all on the table?”

While emphasizing China’s long-standing role in The Bahamas’ development, Director of Communications in the Office of the Prime Minister, Latrae Ramming said, “We do not intend to get between the geopolitical fight of China and the United States.”

The Chinese Embassy in its statement cited similar projects in Trinidad and Tobago and Guyana and assured that its loans are not politically influenced and represent only a small share of The Bahamas’ external debt.

 “China is a trustworthy friend and reliable partner of The Bahamas,” the embassy said.

 “The loan provided by China is long-term and very low-interest” it also stated while calling on the US to abandon its “outdated Cold War mentality,” and urged Washington to adopt a more inclusive approach to Caribbean development.

The new specialty hospital will have diagnostic and interventional imaging services; will support molecular medicine services, and have a neonatal intensive care unit. The facility will offer same-day surgeries and minor procedures, a blood bank and laboratory services, a national reference morgue and pathology services along with diagnostic and interventional imaging services.