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| Rockland |
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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 | 26248 |
| Company name | Rockland Hospitals Limited |
| Country | India |
| Sector | Health Care |
| Environmental category | B |
| Department | Health and Education |
| Status | Active |
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| Date SPI disclosed | February 12, 2008 |
| Projected board date | March 27, 2008 |
| Previous Events | Invested: July 22, 2008
Signed: June 6, 2008
Approved: May 27, 2008 |
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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 |
The proposed project is an expansion of Rockland Hospitals (RH or the company). RH currently has an existing 90 bed facility in Qutab Institutional Area in New Delhi, India. The project has three main components:
- the addition of 66 beds and the development of a 40 bed satellite unit to the existing 90 bed facility;
- the development of a new 250 bed facility in Manesar – an emerging city to the south of Delhi; and
- a television channel focused on health-related services. |
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| Project sponsor and major shareholders of project company |
The sponsors comprise three brothers from the Srivastava family. These brothers have 35 years of entrepreneurial experience, beginning in 1973. In that period, the sponsors started businesses as diverse as clothing manufacture, electrical goods importation, retail, and real estate. The sponsors currently run two lines of business: health care and hospitality.
Rockland Hospital is owned by the sponsor (Srivastava) family and relatives (53.91%), their affiliate companies (44.77%) and their employees (1.32%). |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at Rs.3,015 million (approximately $76m). The proposed IFC investment is a Rs.875 million (approximately $22m) in equity and quasi-equity for IFC’s own account. |
| Location of project and description of site |
RH is headquartered in Qutab Institutional Area in New Delhi, India. The current existing hospital is also located here.
The new Rockland Hospital will be located in Manesar, an industrial city in the Gurgaon district of the State of Haryana. |
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| Anticipated development impact of the project |
| The project will expand healthcare infrastructure and thus provide greater access to quality healthcare services to increased numbers of patients in New Delhi and Manesar. The project also complements the Government of India’s endeavors to expand access to healthcare, including provision of healthcare to government employees. It is also expected to create over 1,500 jobs for new nurses and doctors. |
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| IFC's expected development contribution |
IFC will offer:
- the provision of financing which is structured to provide the company breathing space in the critical ramp-up period of the project,
- its global experience in financing healthcare companies and its expertise in and knowledge of the private healthcare sector in developing countries,
- credibility and discipline to the company as it approaches its proposed IPO, and
- support in improving the corporate governance and environmental, social and insurance standards and operating practices of the company’s hospitals. |
| Environmental and social issues - Category B |
This project is being reviewed as a direct investment according to IFC’s Social and Environmental Sustainability Policy. Based on a preliminary review of project information, the following Performance Standards (PS) are expected to be applicable:
- PS1: Social and Environmental Assessment and Management Systems with respect to corporate environmental, social, and health and safety management systems policies and procedures and their implementation across its existing and proposed operations, including national and local government permitting requirements;
- PS2: Labor and Working Conditions including occupational hygiene, health, safety and training programs and protocols for all employees, and specific measures for housekeeping, radiation, kitchen and other at-risk employees and contractors;
- PS3: Pollution Prevention and Abatement including environmental and social issues typical of health care projects such as air emissions and noise; water and wastewater; power (including fuel storage); hazardous materials management, storage, handling and disposal; and minimization, recycling and disposal of solid and hazardous wastes; and
- PS4: Community Health, Safety and Security including fire and life safety and emergency response, community consultation and disclosure, and corporate social responsibility efforts including HIV/AIDS awareness; and
- PS5: Land Acquisition and Involuntary Resettlement as applicable if land acquisition results in compensation payments and physical and/or economic resettlement. |
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| For inquiries about the project, contact: |
Rajesh Srivastava, Chairman
B-33-34 Qutab Institutional Area, New Delhi 110016, India
Telephone: +91 4122 2222
Fax: +91 4168 8765 |
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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 |
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