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| City School |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28932 |
| Company name | The City School |
| Country |
| Pakistan |  |
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| Sector | Elementary and Secondary Schools |
| Environmental category | B |
| Department | Reg Manufact, Agri & Services, EMENA |
| Status | Hold |
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| Date SPI disclosed | May 6, 2010 |
| Projected board date | June 11, 2010 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
The City School (“TCS” or the “Company”), a Pakistan-based K-12 education group with current operations in Pakistan, UAE, Saudi Arabia and Bangladesh, is proposing to expand (the “Project”) as follows:
Construction of several purpose-built campuses across Pakistan
Acquisition and construction of additional schools in MENA and East Asia
TCS’ expansion plan will be funded by the Company’s internal accruals, local bank debt, and a proposed financing package from IFC. |
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| Project sponsor and major shareholders of project company |
Established in 1978, TCS operates over 155 schools in 45 cities across Pakistan for students between the ages of 3-18. The Company reaches over 54,000 students locally. Outside of Pakistan, TCS operates schools in Saudi Arabia, UAE and Bangladesh, with a total international student strength of over 1,100 students.
TCS is owned by Dr. Farzana Firoz, a renowned educationalist in Pakistan, and her two sons, Mr. Jehangir Firoz and Mr. Aurangzeb Firoz. |
| Total project cost and amount and nature of IFC's investment |
| The total expansion cost (“Project Cost”) for TCS’ proposed expansion in Pakistan and abroad is estimated at approximately $73 million. IFC is proposing to provide a financing package of up to $25 million to TCS’ proposed holding company (“HoldCo”), to partly fund this expansion. |
| Location of project and description of site |
TCS’ proposed projects are in the following countries / regions:
Pakistan
MENA
East Asia |
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| Anticipated development impact of the project |
- Increasing access to quality K-12 education in MENA and Asia through capital investments: Many countries in MENA and Asia continue to lack adequate facilities and experienced teachers at the K-12 level even as these countries develop and incomes rise
- Enhance access to education in rural and less developed areas of Pakistan, where literacy rates are lower and high quality education can be provided at more affordable rates
- Regional integration of best practices and consolidation: TCS' hub-and-spoke model will allow the Company to transfer valuable knowledge and best practices abroad and to remote areas of Pakistan as well
- Generate employment opportunities both locally (Pakistan) and internationally: this will particularly benefit women, many of whom may be hired as teachers and who may find it more challenging to secure jobs in other sectors of their local market
- Provide training and upgrading opportunities to employees: TCS' training program (INSET) is affiliated with several top universities in the UK, and will nurture high caliber teachers in regions where formal teacher training is scarce. |
| IFC's expected development contribution |
-International Growth Support: IFC involvement will allow TCS to make more informed decisions and choices in its international growth program, especially in its country selection criteria or when making acquisitions.
-Positive Signaling Effect: IFC investment will send a positive signal to other investors and help TCS to leverage it appropriately in the future to finance its growth further and to expand into rural areas and less developed second tier cities.
- Corporate Governance: IFC involvement will assist the Company in improving its Corporate Governance standards and help it successfully transition from a family owned business into a corporate business.
- Potential to Implement Energy Efficiency strategies in new-build, thereby encouraging other private education providers to consider doing the same: Should TCS work with IFC to implement green initiatives it may contribute to significant cost-savings, reduced environmental impact, and importantly, provide a strong demonstration effect inducing other companies in Pakistan to assess the merits of such initiatives. |
| Environmental and social issues - Category B |
The key environmental, social, health and safety impacts associated with the project include the sponsor’s ability to manage Environmental, Health and Safety (EHS) issues consistently across operations in different countries; employment practices and working conditions during construction and operations; life and fire and safety (LF&S), energy efficiency and ‘green building’ opportunities; and management of liquid, solid waste and potable water supply.
IFC's review of the proposed investment included meetings with senior management of TCS in Pakistan; site visits to some premises in Lahore and Karachi, Pakistan; and review of numerous documents provided by TCS. A detailed description of IFC’s environmental and social due diligence of this investment can be found in the Environmental and Social Review Summary (ESRS), which is also available on IFC’s website at http://www.ifc.org/projects . |
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| For inquiries about the project, contact: |
Mr. Ejaz Ul Haque
Executive Director, Projects
Email: canho25@csn.edu.pk
Rabia Imtiaz
Architect
Email: design@csn.edu.pk |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Mr. Ejaz Ul Haque
Executive Director, Projects
Email: canho25@csn.edu.pk
Rabia Imtiaz
Architect
Email: design@csn.edu.pk |
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