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| AMA International University W.L.L |
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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 | 29050 |
| Company name | AMA International University W.L.L |
| Country |
| Philippines |  |
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| Sector | Colleges, Universities, and Professional Schools |
| Environmental category | B |
| Department | Reg Manufact, Agri & Services, ASIA |
| Status | Pending Signing |
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| Date SPI disclosed | May 6, 2010 |
| Projected board date | June 18, 2010 |
| Previous Events | Approved: July 14, 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 |
AMA University and AMA Computer Colleges Inc. (“AMACC” or “Project Companies”) provide higher education with a focus on information technology and computer related education across the Philippines. AMACC has 40 existing colleges and one university. AMACC intends to expand its information technology and engineering education service offerings in the Philippines (the “Project”) as follows:
Construction and/or renovation of twelve new and existing college campuses to address the current capacity constraints and to improve facilities
Upgrading equipment and expansion of engineering laboratories needed for the introduction of new engineering focused degree programs
Refinancing some of the existing short and medium term debt to longer maturities in line with the long term nature of the underlying asset. |
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| Project sponsor and major shareholders of project company |
The Sponsor of the Project is Ambassador Amable Aguiluz V, who is the founder and chairman of the AMA Group of Companies. The Ambassador has been instrumental in the exponential growth of the AMA Group from a single computer college in 1980 to a diversified group of companies (education, banking, real estate sectors etc.). Ambassador Aguiluz V is the Chairman of the AMA Group. He is also currently serving as the President of Philippines’s special envoy to the Gulf Cooperation Council.
Established in 1980, the AMA Group of Companies (the “Group”) is involved in education, banking, insurance, consulting and real estate. Its education businesses extend across Philippines (main operations) as well as in Bahrain, Saudi Arabia, Hong Kong and China. AMA International University (Bahrain) W.L.L, which is the proposed IFC Borrower, is a privately owned business with shareholding limited to the Aguiluz family (90% Amable Aguiluz IX and 10% Amable Aguiluz V). In Philippines, the Aguiluz family (Amable Aguiluz IX) comprises the majority shareholders (98.3%) of the Philippines based computer companies (“AMACC”). |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $75 million. The proposed IFC investment is an A loan of up to $35 million for IFC’s own account. |
| Location of project and description of site |
| AMA University and Computer Colleges Inc. has 41 campuses covering the full geographic spectrum of the Philippines; 12 campuses in metro Manila, 12 campuses in northern Luzon region, 7 campuses in southern Luzon region and 5 campuses each in Visayas and Mindanao regions. The Project funds will be utilized to make investments throughout the existing campuses and at new sites in close proximity to the existing campuses. |
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| Anticipated development impact of the project |
Improved access to higher education in information technology and engineering: Since AMA has a wide network of colleges not only in Manila but throughout the Philippines, it is reaching out to the less developed and frontier regions. This project will increase capacity of some of the campuses to combat the current capacity constraints, thereby increasing the reach of the provision of technical education throughout the country.
Improved quality of education provision: The upgrading and addition of new equipment for the engineering laboratories will lead to improved delivery of quality engineering education.
Increase employment opportunities: The Project will increase numbers of graduates with skills in demand in local and international job market. The Group actively includes job opportunity enhancement and placement as part of its offerings.
Taxes to the Government: Since the Project is expected to contribute to the growth of AMACC, it will also allow greater tax generation for the government. |
| IFC's expected development contribution |
Long-term financing: IFC is proposing providing long term financing in line with the needs of AMACC and its expansion program. Such long term financing is currently unavailable in the Philippines and Bahraini markets.
Improved corporate governance standards and financial management systems: IFC will share its knowledge of industry best practices to improve the overall standards of corporate governance and financial management at AMA Group.
Improved environmental and social standards: IFC will assist the Company in raising it environmental and social standards to be closer to international best practice standards. |
| Environmental and social issues - Category B |
The key environmental and social issues have been identified as: (a) the existence of a social and environmental assessment and management system including (i) developing and integrating a formal environmental and social assessment procedure into the land assessment process; and (ii) development of an corporate level EHS management framework and school-level EHS plans (including standardized procedures for monitoring and quality assurance); (b) contractor management during construction and management of contractors and other service providers during operation of facilities; and (c) life and fire safety (design of new buildings, assessment and retrofit of existing buildings).
As a result of its due diligence, IFC has concluded that the potential adverse environmental and social impacts presented by the project are relatively few in number, site-specific and have been or can be readily addressed through mitigation measures. It is therefore concluded that this is a Social and Environmental Category B project. |
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| For inquiries about the project, contact: |
Angel C. Montes, Jr.
VP, Loan and Investment Department
59 Panay Avenue, Quezon City
1103 Philippines
Tele: (632) 373 3901 -08
Fax: (632) 373 4652
Email: ACMontesjr@amaes.edu.ph |
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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 |
Angel C. Montes, Jr.
VP, Loan and Investment Department
59 Panay Avenue, Quezon City
1103 Philippines |
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