ACOMET

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

27503

Company name

ACOMET Family Hospital

Country

Afghanistan

Sector

Hospitals and Clinics

Environmental category

Department

Reg Manufact, Agri & Services, EMENA

Status

Active

Date SPI disclosed	November 18, 2008
Projected board date	December 18, 2008
Previous Events	Invested: June 22, 2009 Signed: January 28, 2009 Approved: January 14, 2009

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Afghan Centre of Multi-Professional Education and Training Family Hospital (“ACOMET” or the “Hospital”) is a greenfield hospital and training center in Kabul, Afghanistan (the “Project”). The Hospital officially opened in August 2007 and focuses on cardiology, dermatology and family medicine and also has a pharmacy and laboratory. ACOMET also has an on-site training center, through which it provides a diploma in family medicine and internship opportunities for students at neighboring medical schools. IFC has been requested to provide debt financing of up of to $4.5 million. This financing will be used to acquire the remaining medical equipment needed to complete the first phase of the project.

Anticipated development impact of the project

The development impacts of this project include:

- Delivery of high quality health care services to Afghan people: Afghanistan is among the least developed countries in the world. ACOMET will bring much needed health care capacity and new services to Afghanistan.

- Training critically needed medical workers: Due to the recent conflicts in Afghanistan, many medical professionals emigrated from the country. This combined with the general global demand for health care workers has caused a critical shortage of trained workers in Afghanistan. ACOMET will focus on providing quality medical education to doctors and nurses in Afghanistan and provide valuable internship opportunities to students. Furthermore, the health care workers who remained in Afghanistan during the war were professionally isolated from the rest of the global medical community receiving poor out-dated training. ACOMET will offer continuing education to bring its employees up to speed with global standards.

- Retain income in Afghanistan: Hundreds of Afghans travel to neighboring countries for medical treatments each year due to the lack of quality facilities locally. The Hospital will be able to treat a portion of these patients keeping the income in the country and reducing the hardship of travel for patients and their families. Also, the opportunity to receive high quality medical treatment locally will save Afghans the high cost of travel and medical expenditure abroad.

- Demonstration of excellent clinical standards and corporate transparency: ACOMET is committed to achieving excellent clinical standards and maintaining transparent corporate practices. Through this, it will act as an example to other private hospital and other businesses in Afghanistan.

IFC's expected development contribution

In addition to the provision of long-term financing, IFC’s expected role and development contribution will include:

- Positive signal: IFC’s participation in this project will send a strong signal to foreign investors that it is possible to finance feasible social sector projects in Afghanistan despite perceptions of high country risk and challenging business environment.

- Global relationships in health care sector: ACOMET views IFC as a long-term credible international strategic partner and resource for strategic and operational advice and guidance, given IFC’s broad global and regional project and sector experience. IFC will use its knowledge of the health care sector and the investment climate of the MENA region to assist ACOMET in finding an operating or financial partner in the future.

- Corporate governance: IFC’s monitoring, reporting requirements, and financial covenants will help the Company develop its corporate governance and internal systems.

Environmental and social issues - Category B

While all Performance Standards (PSs) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts that must be managed in a manner consistent with the following PSs:

- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement; and
- PS4: Community Health, Safety and Security.

The key environmental, social, health and safety associated with the project include:

- Emissions to air and water;
- Implementation of an environmental, health and safety management system;
- HR practices and working conditions;
- Occupational health and safety, particularly including life and fire safety, hygiene control mechanisms, and potable water supply;
- Management of hazardous materials, liquid, solid wastes; and
- Community health and safety and community engagement.

Given that the proposed project location is in an urban neighborhood, adverse impacts on environmentally sensitive areas are not expected to occur. The nature of hospital operations is such that it will be possible to readily design and implement engineering and management measures to mitigate any adverse impacts resulting from the project that are not expected to be diverse or irreversible and will be limited to the project site. For these reasons the project has been classified as a Category B. A detailed description of the environmental and social assessment undertaken can be found in the Environmental and Social Review Summary (ESRS) also available on IFC’s website.

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