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| Chuvash Health |
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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 | 27786 |
| Company name | Chuvash Republic |
| Country |
| Russian Federation |  |
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| Sector | Hospitals and Clinics |
| Environmental category | B |
| Department | Reg Ind, Infra & Nat Res, EMENA |
| Status | Active |
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| Date SPI disclosed | December 8, 2008 |
| Projected board date | January 8, 2009 |
| Previous Events | Invested: July 15, 2009
Signed: May 18, 2009
Approved: May 7, 2009 |
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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 proposed investment would support the implementation of the Chuvash Republic’s 2009 capital expenditure program in the health care sector that includes investments in civil works, acquisition of new diagnostic and treatment equipment and information technology systems aimed at improving medical care services for cardiovascular diseases and trauma. |
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| Project sponsor and major shareholders of project company |
The Chuvash Republic is one of the 83 Federal subjects of the Russian Federation, located approximately 650 kilometers east of Moscow with autonomous executive and legislative branches and budget. The population of the Republic is 1.3 million people.
The Chuvash Republic has a strong credit history and budget management reputation. I has a stand alone rating of Ba2 (international scale) and Aa2.ru (national scale) from Moody’s Interfax Rating Agency. The current outlook for both ratings is “Stable”. Consolidated revenues of the Republic reached RUR28.3 billion ($1.1 billion) in 2007, while total expenditures, including capital investments of RUR8.3 billion ($320 million), were RUR29.1 billion ($1.12 billion). |
| Total project cost and amount and nature of IFC's investment |
The total project cost is estimated at RUB425 million (approximately $15.5 million). The proposed IFC investment is a senior loan of up to RUB 200 million (approximately $7.3 million). The expected maturity of the loan is 5 years, including 2 year grace period. |
| Location of project and description of site |
| Project investments will be implemented in the Republic’s capital Cheboksary and a number of other smaller districts within the Republic. |
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| Anticipated development impact of the project |
Investments to be financed under the proposed project will help the Republic to implement its health care restructuring plan and achieve the following objectives:
- improve the quality of life of the economically active population by reducing premature mortality, ill health and disability associated with the onset of preventable cardiovascular diseases;
- promote local economic growth by reducing job losses and medical care costs associated with medical care and social safety net payments. |
| IFC's expected development contribution |
| The proposed loan would provide the Chuvash Republic with long-term local currency financing that is currently not possible to secure from commercial banks or capital markets, to implement a highly needed capital expenditure program in the healthcare sector. Also, as a result of the proposed investment the Republic would benefit from gaining further access to Bank Group’s experience and knowledge in health care systems, helping ensure successful implementation of the project. |
| Environmental and social issues - Category B |
This 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 is publicly available in the Environmental and Social Review Summary (ESRS) disclosed through IFC’s external website. |
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| For inquiries about the project, contact: |
Dmitry A. Matveev
Head of Medical and Social Development Department
Ministry of Healthcare and Social Development of the Chuvash Republic Russian Federation, Chuvash Republic, 428000, Cheboksary
Presidentskky Blvd., 17
E-mail: medicin-rgrp@cap.ru Telephone: +7 (8352) 62-47-53 Website: http://gov.cap.ru/main.asp?govid=11 |
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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 |
| Project documentation is available at the above location. |
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