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| Braeburn |
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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 | 29350 |
| Company name | Braeburn Schools Limited |
| Country |
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| Sector | Elementary and Secondary Schools |
| Environmental category | B |
| Department | Reg Manufact, Agri & Services, CAF/CLA |
| Status | Active |
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| Date SPI disclosed | April 26, 2010 |
| Projected board date | May 27, 2010 |
| Previous Events | Invested: October 7, 2011
Signed: December 16, 2010
Approved: June 21, 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 |
| Expansion of Braeburn Schools, a for-profit provider of day and boarding K-12 educational services in Kenya and Tanzania. The expansion comprises (i) the construction of a Sixth Form College at Braeburn Gitanga Rd, Nairobi; (ii) the construction of a Sixth Form College and facility improvements at Braeside Nairobi (iii) facility improvements and the construction of boarding facilities at Braeburn Arusha; and (iv) the establishment of Braeburn Mombasa or a similar K-12 school in Kenya or Tanzania (the “Project”). |
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| Project sponsor and major shareholders of project company |
| The Project Sponsor is Braeburn Limited (“Braeburn” or the “Company”), a private limited liability company incorporated in 1978 in Kenya. The Project will be implemented by Braeburn Schools Limited and Braeburn Schools Tanzania Limited, both private limited liability companies domiciled in Kenya and Tanzania respectively. Braeburn is wholly owned by six family companies, which represent the founder investors in Braeburn Limited in 1978: TJ Investments Limited (27.5%), Redshift Limited (16.2%), Ntashat Holdings Limited (16.5%), Nora Properties Limited (16.5%), Utam Limited (6.8%) and Wilma Holdings Limited (16.5%). |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at US$12.0 million. The proposed IFC investment is an A Loan of up to US$6.0 million equivalent. |
| Location of project and description of site |
Project components will be implemented in over four sites, three of which have been identified as follows:
(i) A new Sixth Form school building will be constructed on Braeburn’s existing Gitanga Road Campus in Lavington, Nairobi, Kenya. The existing campus site is in a residential suburb with easy access by road.
(ii) A new Sixth Form building will be constructed on a site adjoining to Braeburn’s existing Braeside Campus in Lavington, Nairobi, Kenya. The site is in a residential suburb and is easily accessible by road.
(iii) New boarding facilities will be constructed on land adjoining Braeburn’s existing Arusha Campus, Tanzania, 12km from the center of Arusha town, and
The Sponsors are currently in the process of identifying an appropriate site for the proposed new school in Mombasa. |
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| Anticipated development impact of the project |
| The Project will increase availability of high quality education in Kenya and Tanzania. Through the introduction of Braeside Sixth Form College, it will make a contribution to broadening the course availability of technical and vocational training, which is limited in Kenya. The Company's continued emphasis placed on teacher training and professional staff development, including the partnership with Kenyatta University on specially designed B.Phil.Ed and M.Phil.Ed courses, will help to increase the availability of high qualified teaching staff in Kenya and Tanzania. The project will create both direct and indirect job opportunities, particularly as management expects to use local staff and local materials in Braeburn's in-house workshops in fitting out new schools. Finally, as Braeburn continues to improve quality standards and works to obtain international accreditation, it can serve as an example to other private education institutions in East Africa. |
| IFC's expected development contribution |
| IFC will provide long-term and extended grace period financing which the sponsor is not able to source locally. IFC will share its global education expertise and provide technical advice in areas such as energy efficiency and "greening" the design of new buildings. IFC's involvement is likely to result in assistance on issues such as corporate governance improvements, which will help to secure the long term future and sustainability of the Company. |
| Environmental and social issues - Category B |
| The proposed extension projects will have limited impacts on the surrounding urban environment of Nairobi and Arusha. The EIA Studies for the Nairobi projects have identified and assessed the potential environmental impacts during the construction and operation phases of the project and, have, to the extent possible, incorporated them into the project design. The same process will be followed for the Arusha and Mombasa projects. The identified environmental and social impacts are generally site-specific and temporary and none are regarded to be significant. Those impacts can be avoided or mitigated by adhering to generally recognized performance standards, procedures, guidelines or design criteria. Thus, this is a Category B project according to IFC’s Environmental and Social Review Procedures. |
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| For inquiries about the project, contact: |
Mr Terry Childs, CEO
Braeburn Limited
Gitanga Road, Lavington
PO Box 45112 0100
Nairobi
Kenya
www.braeburn.com |
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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 |
Mr Terry Childs, CEO
Braeburn Limited
Gitanga Road, Lavington
PO Box 45112 0100
Nairobi
Kenya |
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