Magrabi Eye Hospitals & Centers

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	26360
Company name	Magrabi Hospitals & Centers, Ltd.
Country	MENA Region
Sector	Health Care
Environmental category	B
Department	Health and Education
Status	Pending Disbursement

Date SPI disclosed	October 30, 2007
Projected board date	November 30, 2007
Previous Events	Signed: January 27, 2008 Approved: January 10, 2008

View Environmental & Social Review Summary (ESRS), click here

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

The project consists of financing the expansion in Egypt and Yemen of Magrabi Hospitals & Centers (Magrabi or the Group). The company intends to expand its operations by establishing 8 hospitals and 4 centers in different cities in the MENA region.

Anticipated development impact of the project

The expansion of Magrabi’s services in the MENA region will contribute to:

- expanding access to comprehensive ophthalmologic services, which is experiencing high levels of demand and low levels of supply;
- relieve some of the growing burden currently placed on the public health system;
- offering increased employment opportunities to local healthcare professionals, and other in a superior healthcare environment;
- providing a benchmark of service quality that will potentially raise the general standards of ophthalmologic care elsewhere in the region;
- expand the supply of qualified nursing professional in Egypt through the Group’s recent JV with the British University in Cairo to establish a nursing school;
- expanding healthcare human capital in the MENA region by offering summer training programs for lab and medical record specialists, nurses and doctors; and
- expanding ophthalmologic care to low-income populations by offering both low-cost services at select hospitals and providing pro bono ophthalmologic services to the extremely low-income populations in rural areas via the Al-Noor foundation.

IFC's expected development contribution

IFC’s contribution to this project is expected to:

- help stimulate the delivery of high quality ophthalmologic services in MENA;
- support south-south investments amongst MENA countries;
- help establish benchmarks for delivery of private health and ophthalmologic services in the region; and
- help the Group obtain long-term funding for greenfield projects.

Environmental and social issues - Category B

Magrabi is a category B project according to IFC's environmental and social review procedure. A summary of IFC’s environmental and social review findings for the project including the rationale for the B categorization will shortly be (is) publicly available in the Environmental and Social Review Summary (ESRS). The Environmental and Social Action Plan (ESAP), which is attached to the ESRS, contains specific tasks that the client will undertake to mitigate perceived risks and impacts from the project, and to ensure compliance with IFC’s Performance Standards.

The main EHS aspects of the proposed projects are: site acquisition and characteristics; environmental engineering and safety engineering principles during the sitting and construction phase, air emissions and their treatment; potable water supply and treatment; liquid effluent treatment and disposal; waste management including medical and bio-hazardous waste; worker health and safety including training and housekeeping; disinfection, sterilization, hygiene and implementation of good hospital management practices required to prevent infections among patients and employees; opportunities for energy conservation and efficiency as well as waste minimization; and fire and life safety including emergency response.

In addition, the hospital will be required to develop and implement a corporate-wide, integrated environmental and health and safety management system. Issues such as emergency care for the poor and disadvantaged and the role of the hospital in the community will also be assessed during the supervision of the project.

IFC PROJECTS