Spokesman Sizwe Kupelo said the money was largely allocated to some of the 62 rural hospitals built by missionaries more than 80 years ago. "We have had to demolish and rebuild some of the hospitals from scratch."
Kupelo said the provincial government was also finalising plans to rebuild Madwaleni Hospital in Elliotdale at a cost of about R500-million.
Last month, the Sunday Times reported that the hospital was in a terrible condition and patients often queued more than eight hours to see a doctor.
The hospital, about 40km from former president Nelson Mandela's home in Qunu, serves 260000 people, with just four doctors.
A shortage of doctors has crippled the province's rural hospitals - at some, there are no doctors at all.
"Challenges faced by rural hospitals are not just the state of facilities, but also the issues surrounding leadership, management and a shortage of staff," said Kupelo, adding that the department was doing "everything possible" to address these problems.
Mjanyana Hospital in Engcobo, about 70km from Mthatha, has just one doctor, whereas Greenville Hospital in rural Bizana has been operating without any doctor for more than a year.
The Eastern Cape has 1800 doctors and specialists on its payroll to deliver healthcare to almost seven million people.
Meanwhile, nurses at Nelson Mandela Academic Hospital in Mthatha were this week guaranteed that R5.5-million would be paid out on Wednesday for night-duty allowances dating back to 2007.
On Friday last week, the nurses went on a wildcat strike and held two hospital managers hostage for several hours over the non-payment. -
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