CABEI approves US$193.2 million to Guatemalan healthcare system


6,640,650 inhabitants will benefit from the investment.

Guatemala City, May 04, 2020.- The Central American Bank for Economic Integration (CABEI) approved financing for the Republic of Guatemala amounting to US$193.2 million.  The resources are aimed at the Ministry of Public Health and Social Assistance, specifically for the Hospital Infrastructure and Equipment Investment Program.

The contract was signed by Guatemalan Public Finance Minister, Mr. Álvaro Gonzalez Ricci, and CABEI Country Manager for Guatemala, Mr. Trevor Estrada. It is noteworthy that US$79.0 million of the US$193.2 million will be provided by the Korea Development Co-Financing Facility for Central America; an agreement between the Ministry of Economy and Finance of the Republic of Korea and CABEI.

The CABEI 2020-2024 Institutional Strategy promotes the hospital infrastructure agenda of its member countries, supporting relevant initiatives such as this one in order to modernize and recover the installed capacities of the hospital network in the departments of Alta Verapaz, Jutiapa and Suchitepéquez.

The investment will enable the complete renovation of each hospital through the design, construction and equipment of 56,950 square meters of new facilities to be located on new premises, and a substantial improvement in care with a total of 670 hospital beds.

CABEI Executive President, Dr. Dante Mossi highlighted the importance of having a member such as the Republic of Korea, which has already generated a positive and immediate impact in the region through the Bank. He added that, "In addition to resources, Korea has also provided knowledge on infrastructure and health. On my most recent trip, I had the opportunity to visit hospitals in Seoul that have a streamlined investment efficiency in the sector. The Bank will continue working to strengthen and improve sanitary conditions in benefit of its member countries.”

In addition, the program aims to improve and increase the capacity of national hospitals in Chiquimula and Sololá. In total, the works involve an improvement of 15,980 square meters of existing infrastructure, the construction of 63,495 square meters of new infrastructure, the procurement of 2,179 medical equipment units and an increase in installed capacity in terms of hospital beds with 220 beds, reaching 1,040 hospital beds.

This investment is expected to increase the number of patients attended per year by 37.1 percent, (31,253 people), of which 50.7 percent are estimated to be women. Likewise, it is intended to benefit the population of the target area, which is estimated at 6,640,650 inhabitants and live in the departments of Suchitepéquez, Retalhuleu, Escuintla, Santa Rosa, Jutiapa, Jalapa, Alta Verapaz, Baja Verapaz, Quiché, Sololá, Totonicapán, Chiquimula and Zacapa.

The program will generate an average annual income for the State of US$3.85 million and annual savings of US$689.60 thousand, which will contribute to reducing maintenance costs at the aforementioned hospitals.