NMC II

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	26119
Company name	AVA Peter Ltd
Country	Russian Federation
Sector	Health Care
Environmental category	B
Department	Health and Education
Status	Pending Disbursement

Date SPI disclosed	August 27, 2007
Projected board date	October 15, 2007
Previous Events	Signed: February 20, 2008 Approved: February 19, 2008

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Scanfert Oy, a Finnish holding company currently operates in Russia through OOO Ava Peter and OOO New Medical Center (NMC). Both are leading private providers of healthcare services in St. Petersburg. NMC is an existing IFC client (project #10407). Scanfert Oy has embarked on a five year expansion program in Russia. The proposed project, estimated at a total cost of approximately $49.0 million, comprises the following components of the above expansion program

- Construction and operation of the Primorsky clinic;
- Refurbishment and operation of the Kazan clinic and hospital (public-private partnership);
- Refurbishment and operation of 10 satellite clinics.

Anticipated development impact of the project

Supporting the expansion of the company in Russia will have a strong development impact by widening access to quality healthcare, particularly services not commonly available e.g. infertility services, and establishing benchmarks for administrative and patient care practices in the country’s nascent private health sector.

IFC's expected development contribution

IFC’s main role is as a provider of flexible, long-term financing, attractively priced in a market where there is limited investor appetite for investment in private health sector in Russia at good terms. IFC also has the opportunity to provide certain value-added services and advice requested by the client – financial and accounting management, restructuring and merger negotiations, insurance coverage and corporate governance. IFC will also be supporting the first health public private partnership in Kazan.

Environmental and social issues - Category B

This project, a repeat investment, is being reviewed as a direct investment according to IFC's Social and Environmental Sustainability Policy. Based on a review of project information, site visits and meetings with the sponsor, the following Performance Standards (PS) are deemed to be applicable:

- PS1: Social and Environmental Assessment and Management Systems with respect to corporate environmental, social, hygiene and health and safety management systems, including national and local government permitting requirements;
- PS2: Labor and Working Conditions including occupational health and safety and training programs for employees and third party construction workers;
- PS3: Pollution Prevention and Abatement including particularly waste management;
- PS4: Community Health, Safety and Security including fire and life safety, emergency response, and community consultation and disclosure;
- PS8: Cultural Heritage with respect to the redevelopment of medical facilities in the city of Kazan.

IFC will determine the extent of any gaps in the above Performance Standards and the client will address these via appropriate Action Plans. The existing investment has excellent environmental and social performance.

IFC PROJECTS