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| Medicina |
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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 | 11473 |
| Company name | Medicina Joint Stock Company |
| Country | Russian Federation |
| Sector | Health Care |
| Environmental category | B |
| Department | Health and Education |
| Status | Active |
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| Date SPI disclosed | November 20, 2007 |
| Projected board date | December 20, 2007 |
| Previous Events | Invested: April 24, 2008
Signed: February 21, 2008
Approved: January 10, 2008 |
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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 |
OJSC Medicina (Medicina, the company, or the Hospital) is one of the leading multifunctional private clinics in Moscow, Russia. The project comprises the expansion of the company’s existing facilities:
- construction, equipping and placing into operation of a new hospital building adjacent to the existing facility, with 80-100 beds; and
- expansion of the existing outpatient facilities upon consolidation of in-patient services in the new building. |
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| Project sponsor and major shareholders of project company |
The project sponsor is Dr. Grigory Roytberg: the founder and President of the company which has been in operation since 1990. In addition to being a successful and respected entrepreneur, Dr. Roytberg is also a well published, internationally known cardiologist and Head of the Department of Family Medicine at the Russian State Medical University. Dr. Roytberg is also a member of the Russian Academy of Medical Science and an Honored Physician of the Russian Federation.
The sponsor, directly or indirectly, controls the company. |
| Total project cost and amount and nature of IFC's investment |
| The project cost is estimated at Rb2.5 billion ($96.7 million) of which IFC proposes to finance up to $50 million through a combination of debt for its own account and equity. The exact balance between IFC debt and equity investments will be determined upon finalization of the financing plan. |
| Location of project and description of site |
| The proposed project site is adjacent to the company’s existing facilities located at Building 10, 2nd Tverskoy-Yamskoy Pereulok, Moscow. The site is located in central Moscow with access to transportation routes. |
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| Anticipated development impact of the project |
The project is expected to have significant development impact by:
- increasing access to quality primary, preventative, and secondary health care services in Moscow;
- demonstrating the superior outcomes (medical and financial) achieved by professional management and a long-term commitment to patient satisfaction and clinical quality; and
- attracting and retaining highly skilled physicians. |
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| IFC's expected development contribution |
IFC’s value added to the Project and Medicina include:
- long-term financing compatible with scope and duration of the project; and
- enhanced credibility for the company and its management as it considers accessing the capital markets. |
| Environmental and social issues - Category B |
Medicina 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 environmental and social aspects of the proposed projects are: site acquisition and compensation for affected property owners and municipal tenants; community engagement; occupational health and safety during the construction phase, liquid and solid 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.
The company contains actions the hospital has committed to such as: adding a community grievance mechanism to their existing integrated environmental, health and safety management system; completing a Resettlement Action Plan concerning the relocation and compensation of private and municipal tenants in the buildings they propose to demolish for the new hospital; preserving the facades, as per local legislation, of the heritage buildings that are to be demolished; incorporating relevant labor issues and occupational health and safety into construction contracts; completing a Fire and Life Safety Master Plan and Audit of existing facilities, and corrective action plan, as necessary. |
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| For inquiries about the project, contact: |
Vadim Vishnyakov, Financial Director.
10, 2nd Tverskoy-Yamskoy pereulok,
125047 Moscow
Telephone: +7-495-995-00-33
Fax: +7-495-250-91-80
E-mail: vishnyakov@medicina.ru |
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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 |
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