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| Summary of Project Information (SPI) |
| This Summary of Project Information 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. |
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| Project number | 23923 |
| Project name | Sabis International School - ADMA |
| Country | Lebanon |
| Sector | Education Services |
| Department | Health and Education |
| Company name | SABIS International School - Adma |
| Environmental category | B |
| Date SPI disclosed | December 27, 2004 |
| Projected board date | January 31, 2005 |
| Status | Active |
| Previous Events | Invested: July 28, 2005
Signed: June 21, 2005
Approved: June 3, 2005 |
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| Description of company and purpose of project |
The project will be a greenfield elementary and secondary school built in two phases. The first phase will construct 19,000 square meters of space which will incorporate academic blocks, laboratories, large rooms for specialty classes, a multi-purpose sports center, administration building and parking area. The second phase will add an additional 6,000-9,000 square meters of space for an additional academic block, arts center, cafeteria, teacher accommodations, and outdoor sporting areas. By the completion of the second phase, the facilities will be able to accommodate 1,700 students.
The school is intended to be a flagship of the SABIS group, and as such, will be a showcase for the complete range of educational products and services provided by Intered.
Some of the key features of the services to be provided are:
- complete curricula aligned with international standards;
- software systems including: an Academic Monitoring systems (AMS) and Computer Based Examinations (CBE) to uniquely monitor and report on student performance;
- text books that support the SABIS instructional program; and
- patented learning methodologies.
The company estimates that the initial investment required for setting up the institution would be approximately $26 million, spread over a four-year period. IFC has been requested to provide $8 million of debt. |
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| Project sponsor and major shareholders of project company |
The new company is being sponsored by The SABIS Group, which has the experience of running 27 schools in 11 countries with over 25,000 students. The SABIS Group is owned by two families, the Saad and Bistany families which are descended from the original founders of the Choueifat school. The families’ sole corporate interests are the Sabis school network including Intered S.A.L.
The first school in what is now the SABIS School Network was the International School of Choueifat (ISC), located in the village of Choueifat, a suburb of Beirut, Lebanon. In the mid-seventies, Intered started running schools outside of Lebanon. Currently, Intered S.A.L, based in Beirut, Lebanon manages 17 schools in Africa, the Middle East and Asia while an American affiliate, SABIS USA manages 10 schools in Europe and the USA. Some of these schools were newly established, but others were operating when Intered began to manage them. As such, Intered has experience in all aspects of school establishment, including architectural and functional design, construction management, staff training and recruitment, alignment of curricula, development of transitional curricula, academic monitoring, are financial management, The SABIS curriculum is highly structured and designed to pride themselves on achievement of high academic results. |
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| Total project cost and proposed IFC investment |
| The total project cost is $25.8 million and IFC participation in an A Loan is of $7.8 million |
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| Location of project and description of site |
| The school will be located on a single 80,000 square meter plot of land in the area of Adma/Kfaryassine. |
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| Project Development Impact and IFC's Role |
The project will have a strong development impact in expanding access to high quality private K-12 education in Beirut and demonstrating best management and educational practices throughout the sector. The demand for primary and secondary education in Lebanon has grown steadily since the end of the conflict, however, the public sector has not responded with either sufficient quantity or quality. Although the public sector is improving, the private sector dominates both in terms of standards and coverage, accounting for 75 percent of provision overall, and 50 percent of K-12. Quality varies widely within the private sector, however, and to that end, the project will set an example for other primary and secondary institutions based on its extensive experience internationally and established reputation for high academic and managerial standards.
IFC’s Role
- Provide long-term funding to a mid-sized education provider: By providing a long-term loan, IFC would provide financial support that is not easily accessible to the sponsors. Although the local banking community considers the sponsors an attractive client and are willing to lend to the project, they are not able to provide money of sufficient maturity to match the longer build up periods associated with a school project.
- Positive Signal: IFC’s role in this project will send a signal to foreign investors that it is possible to finance feasible projects in Lebanon despite perceptions of high country risk. |
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| Environmental and social issues - Category B |
Based on the available information, this is a category B project according to IFC's environment and social review procedure. Issues to be addressed include fire and life safety provisions for all buildings, water supply and wastewater disposal, solid waste disposal, storage of hazardous materials (if any), provisions for student healthcare, and employee health and safety during construction.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
| The Environmental documents are located in the INTERED corporate offices: P.O.Box 811;Jounieh, Lebanon. |
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| To contact the project company, please write to: |
Mr. Carl R. Bistany, President
INTERED
P.O.Box 811, Jounieh, Lebanon
Phone: 96-1-964-3358
Fax: 96-1-964-3360 |
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