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| Hygeia II |
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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 | 26806 |
| Company name | Hygeia Nigeria Limited |
| Country | Nigeria |
| Sector | Health Care |
| Environmental category | B |
| Department | Health and Education |
| Status | Pending Disbursement |
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| Date SPI disclosed | May 19, 2009 |
| Projected board date | June 30, 2009 |
| Previous Events | Signed: June 29, 2009
Approved: June 25, 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 |
Hygeia Nigeria Limited (“HNL” or the “Company”), headquartered in Lagos Nigeria, is an integrated health care company offering both hospital and health maintenance organization (“HMO”) services to the formal sector. The Company owns and operates three Lagoon Hospitals in Apapa, Ikeja and Victoria Island. In addition, HNL manages 14 worksite clinics and provides HMO cover for over 250,000 lives through a network of over 1400 clinics and hospitals throughout Nigeria.
This is a repeat investment by IFC in the Company. IFC initially invested in HNL in 1999 through the African Enterprise Facility and this project is now complete. Subsequent to this, in 2007 IFC undertook a further investment in HNL to facilitate renovation and expansion of the hospitals, assist with implementation of information technology system, refinance debt and provide working capital. This investment is still in progress.
The Company is undertaking an expansion of it hospital network (“Lagoon Hospitals”) and Health Management Organization (“HMO”) operations through:
- the upgrade of existing information technology (“IT”);
- construction of a 30-bed hospital; and
- construction of an oncology centre at one of its hospitals in Lagos including an additional 20 beds (the “Project”). |
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| Project sponsor and major shareholders of project company |
| The Project sponsor is Hygeia Nigeria Limited (“HNL” or the “Company”), a limited liability company, incorporated in 1984 and founded by the husband and wife team of Professor E. A. Elebute and Professor (Mrs.) O.W. Elebute. Although privately held, the Company’s shares are held by both individual and institutional investors with the Elebute family representing more than 50%. |
| Total project cost and amount and nature of IFC's investment |
| The total Project is estimated to cost Naira 2.4 billion (approximately $16 million) to be financed with a combination of debt and equity. The proposed IFC investment is a combination of an A Loan of up to USD 4 million and C Loan of up to USD1 million to HNL for IFC’s own account. |
| Location of project and description of site |
| The Project includes the construction of two new hospital facilities in Lagos. The process to determine the exact locations is on-going. |
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| Anticipated development impact of the project |
| The Project is expected to have a strong development impact by increasing availability of quality healthcare including renal and oncology services which are currently in short supply in Nigeria. In addition, the Project will increase access to quality healthcare through the expansion of lives covered through HNL’s HMO operations. Lastly, through improvements in operational efficiencies and quality standards, the Project will demonstrate best-in-country administrative and patient care practices throughout the medical community. |
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| IFC's expected development contribution |
| IFC will provide access to long-term financing appropriate for the Project’s long-term investment profile. The investment in the Company will assist in the development of a strong and viable private healthcare sector in Nigeria. In addition, IFC’s investment in Hygeia will signal confidence in HNL to other potential investors. This should assist Hygeia in further developing its equity base and in securing the necessary finance to fund its future expansion. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects due to the limited number of site specific environmental and social impacts that may occur and which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
Key environmental and social issues associated with the existing operations, along with those associated with the new Project, relate to implementation of an environmental management system, access to clean potable water, occupational health and safety, and design and construction of facilities in compliance with international life, fire and safety standards. So as to ensure these issues are addressed at existing facilities in accordance with IFC requirements, HNL are implementing appropriate measures as defined in the Environmental Action Plan (EAP) for this investment. Potential impacts, largely environmental, as a result of the new hospitals will be generally localized and confined to the development footprint. Mitigation measures for these impacts have been defined in the EAP for this Project and so as to improve HNL’s overall environmental and social performance. |
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| For inquiries about the project, contact: |
Mrs. Fola Laoye, Managing Director
14 Amodu Tijani Close
Victoria Island, Nigeria
Website: www.hygeiagroup.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 |
Mrs. Fola Laoye, Managing Director
14 Amodu Tijani Close
Victoria Island, Nigeria
Website: www.hygeiagroup.com |
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