Brookhouse Schools Limited

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	25173
Company name	Brookhouse Schools Limited
Country	Kenya
Sector	Education Services
Environmental category	B
Department	Health and Education
Status	Completed

Date SPI disclosed	October 13, 2006
Projected board date	November 22, 2006
Previous Events	Signed: December 7, 2006 Approved: November 29, 2006

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

The project entails the expansion of Brookhouse Schools Limited (Brookhouse or the company) a for-profit, K-12 co-educational day and boarding school in Kenya and comprises:

- the construction of a modern new junior school on an adjacent plot;
- acquisition of five school buses; and
- refinancing of short and medium term debt to strengthen its Balance Sheet.

Anticipated development impact of the project

The proposed project will have a strong development impact by expanding access to high quality private K-12 education in Kenya. In addition to providing quality education, the School undertakes community outreach, including supporting orphaned children’s homes, the Kenyatta National Hospital and the Kenya Society for the Protection and Care of Animals.

Brookhouse also provides professional mentoring and support to a nearby school and has adopted a low cost school in the neighboring Kiserian village that it provides with financial and in-kind contributions. Continued growth of Brookhouse will allow further extension of these programs.

IFC's expected development contribution

The role for IFC in the project is:

- to provide long-term financing not readily available to schools in Kenya;
- to offer valued advice in project implementation, financial gearing and environment and social best practices; and
- to provide technical assistance support to strengthen corporate governance for family owned businesses and to support the fight against HIV/AIDS.

Environmental and social issues - Category B

This is a category B project according to IFC’s procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria.

Brookhouse School was visited by CESIG Resident Environmental Specialist, as well as by the Senior Architectural Advisor for Life and Fire Safety Issues. The latter has been working with the School’s consulting engineers to ensure that the school is in compliance with national and internationally acceptable fire and life safety standard as per IFC guidelines.

Potential environment, health and safety, and social impacts of the project that were analyzed during appraisal included:

- source and adequacy of water supply,
- liquid and solid waste management and disposal,
- managing environmental impacts during construction,
- fire and life safety,
- labor and working conditions for students, staff,
- construction workers and the public, and
- the schools activities in the local community.

The identified environmental, social and health and safety impacts which require ameliorative activities are summarized in an Environmental and Social Action Plan (ESAP) that Brookhouse will implement as part of IFC’s Loan Agreement and which is attached to the disclosed Environmental and Social Review Summary. Upon successful implementation of the agreed mitigation measures, the proposed project will meet Kenyan laws and regulations as well as the applicable IFC performance standards.

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