University of Science & Technology

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	26455
Company name	Al-Mawarid Company for Educational and Health Services
Country	Yemen, Republic of
Sector	Health Care
Environmental category	B
Department	Health and Education
Status	Pending Disbursement

Date SPI disclosed	January 23, 2008
Projected board date	March 17, 2008
Previous Events	Signed: June 3, 2008 Approved: April 30, 2008

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

In line with its strategic plan to become the premier provider of private educational and healthcare services in Yemen, the Al-Mawarid Company for Educational and Health Services, which operates under the brand names of University of Science and Technology (UST) and University of Science and Technology Hospital (USTH), is embarking on a three year expansion program. The project is estimated at total cost of $38.9 million and comprises the following components:

- Expansion of UST’s physical facilities and capacity in Sana’a and Taiz:

UST currently has six branches located in six different governorates of Yemen, with the largest branch in Sana’a. UST also intends to increase the capacity of its distance learning program and information technology systems.

- Expansion of USTH, an existing teaching hospital (144 beds) in Sana’a, up to 200 beds capacity gradually over the next three years:

The expansion will also involve some upgrading of current facilities, the completion of a car park, purchase of certain specialized medical equipments, expansion of cardiothoracic surgery services, provision of certain oncology (cancer care) services and relocation and refurbishment of emergency department.

Anticipated development impact of the project

The proposed expansion program has the potential for significant development impact through:

- Expansion of delivery of high quality education and healthcare services in Yemen.
- Strong demonstration effect on the private tertiary education and healthcare sectors. The sponsor’s focus on quality in both service provision and management will make it a leader and thus a point of reference in Yemen. If successful, this investment will encourage other private sector companies to invest in quality education and health facilities in the country. Having a strong brand name, solid capital base, knowledge of and commitment to the local markets, the sponsor has greater likelihood of success than many other potential entrants.
- Expansion of access to much needed good quality tertiary education in Sana’a and beyond Sana’a. Yemen currently produces approximately 190,000 high school graduates and the country’s total tertiary education capacity (public and private) can accommodate approximately 40,000 students.
- Development of human capacity in Yemen - upgrading of skills levels in the economy. There is a shortage of skilled labor in Yemen. This project builds capacity for in-country training and education thereby increasing access to higher education and potentially increasing the pool of available skilled local labor.
- Increase number of quality trained local doctors in Yemen USTH was established initially to provide a teaching hospital environment for UST medical school students. The expansion of the hospital will enable UST to offer more programs in its medical school and increase the number of its intake.
- Expansion of quality healthcare to lower-income population. USTH’s facilities are low-cost hospitals and are designed to serve lower-income patients who would otherwise have limited options for care.
- Provision of free/discounted treatments to low income patients.
- Targeting and increasing education of females in Yemen.

IFC's expected development contribution

IFC will play a critical role in this transaction by providing long-term flexible financing to fund healthcare and education operations in Yemen, sharing global sector knowledge including best management and operational practices, contributing to improving financial discipline through its financial covenants and monitoring. IFC also expects to share its project implementation experience and know-how from its work in the region and globally as well as expertise in university and hospital projects from all over the developing world.

Environmental and social issues - Category B

UST is a category B project according to IFC's environmental and social review procedure. A summary of IFC’s environmental and social review findings for the project including the rationale for the B categorization will shortly be publicly available in the Environmental and Social Review Summary (ESRS. The Environmental and Social Action Plan (ESAP), which is attached to the ESRS, contains specific tasks that the client will undertake to mitigate perceived risks and impacts from the project, and to ensure compliance with IFC’s Performance Standards.

The main EHS aspects of the proposed projects are:

- site acquisition and characteristics;
- environmental engineering and safety engineering principles during the sitting and construction phase, air emissions and their treatment;
- potable water supply and treatment;
- liquid effluent treatment and disposal;
- waste management including hazardous healthcare waste;
- worker health and safety including training and housekeeping;
- disinfection, sterilization, hygiene and implementation of good hospital management practices required to prevent infections among patients and employees;
- opportunities for energy conservation and efficiency as well as waste minimization; and
- fire and life safety including emergency response for both UST and USTH.

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