ISLAMABAD, April 30: The Japan International Corporation Agency (Jica) has signed a Rs713 million agreement with the Pakistan Institute of Medical Sciences (Pims) under which the agency would provide manpower and funds to the hospital to lay new water and sewerage lines, replace all airconditioner plants and build two operation theatre suites, the Pims executive director, Fazle Hadi told Dawn here on Friday.

However, the sources said that at one stage the agreement was about to be cancelled due to lapse of the time period. The agreement was to be implemented by March 30, but the hospital authorities did not open a bank account and contacted the agency for extension in the time period, the sources further said.

Fazle Hadi said according to the Japanese law the agreement had to be singed in Japan. He said the agency asked him to appoint his deputy, who could take charge and be aware about the project in his absence. Mr Hadi said as per their requirement, he chose Mr Jehanzib Orakzai as deputy executive director.

However, at the time the agreement was signed, Mr Orakzai was director Children Hospital and Dr Minhajul Siraj was deputy executive director (DED) of the hospital. In response to a question as to why a health ministry representative did not go to Japan to sign the agreement as an established norm, Mr Hadi said he and the DED went to Japan, as the health ministry was not involved in the project.

Mr Hadi said the project was indispensable as the 2001 floods had damaged the ground and first floor of the Children Hospital. He said the Jica would issue the grant in three instalments and the hospital had received the first instalment of over Rs30 million.

A bank account was opened in the National Bank of Pakistan (NBP) last week on behalf of the hospital, he added. He said the architects and designers of Jica had started work on the project.