Asian Hospital 2

Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed 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 of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.

Project number	26201
Country	Philippines
Sector	Health Care
Department	Health and Education
Company name	Asian Hospital Inc.
Environmental category	B
Status	Active

Date ESRS disclosed	December 11, 2007

Previous Events	Invested: February 20, 2008 Signed: February 8, 2008 Approved: January 16, 2008

View Summary of Proposed Investment (SPI), click here

Overview

Category & Applicable Standards

Key Issues & Mitigation

Community Engagements

Client's Documentation

Overview of IFC's scope of review

The scope of review of AHI's compliance with IFC’s Performance Standards included assessment of AHI's management capacity of its environmental, social, health and safety performance. The review relied on documents and reports made available by AHI, Annual Monitoring Reports submitted by AHI for a pervious investment, and interviews conducted by IFC staff during their site visits to AHI facilities in Manila. During the visit IFC staff conducted interviews with key management personnel and AHI staff responsible for environmental, social, health and safety.

Project description

Asian Hospital, Inc. (AHI or the company) is an existing IFC client, and was the first major private hospital with tertiary care facilities in the southern Luzon corridor of metropolitan Manila. AHI operates a 253 bed hospital located in the Filinvest Corporate City which they are planning on expanding. IFC financing will be used mainly to support AHI in debt refinancing and new capital expenditure programs associated with the expansion and refurbishment of the existing hospital and to construct a new tower for in-and outpatient services on existing land at the present location.

Key environmental and social issues and mitigation

AHI has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, continue to comply with the environmental and social requirements - GOP laws and regulations and IFC Performance Standards. The information about how these potential impacts will be addressed by AHI is summarized in the paragraphs that follow.

- Social and Environmental Assessment and Management Systems:

AHI has a management system to manage Environmental, Health and Safety (EH&S) performance of the company. The Chief Executive Officer of AHI in coordination with the Chairperson of the Safety Committee is responsible for a Safety Management Program which provides oversight of environmental, social and health and safety. Daily activities are coordinated by a Safety Officer who reviews changes in laws, regulations, and standards; assesses the need to make changes to general safety, equipment, procedures, training, and performs other activities essential to implement the Safety Management Program. The Safety Officer is also responsible for conducting risk assessment (job hazard analysis) and for coordinating the annual review of all programs under his oversight. AHI’s management program includes operational policies and procedures that are implemented at the facilities level by department directors and managers who report to the Safety Officer. Policies and procedures are in compliance with applicable GOP regulations for operation of these facilities and consistent with good international industry practice.

Human resources are managed effectively at AHI through the HR Department. Training of staff is done on a routine basis in compliance with GOP workplace regulations and is summarized in training manuals available to the staff. Department managers are responsible to ensure that employees are adequately trained to perform their work safely. Subcontractors are contractually obliged to have adequately trained workers.

AHI has a monitoring program for EH&S issues that are managed in compliance with GOP regulations. Reporting requirements are consistent with national laws and regulations, and are used for continual improvement of training programs especially in health and safety. Internal audits are conducted periodically with oversight of senior management. As required by GOP regulations, AHI provides external status reports such as those for environmental and health and safety performance to the relevant government authorities, who, in turn, disseminate information to the public, as necessary.

- Labor and Working Conditions:

Labor practices and working conditions, including occupational health and safety, at AHI’s operations comply with GOP regulatory requirements. AHI has a Human Resources policy that is consistent with GOP labor laws. The Company’s human resource policy is included in employment contracts, and addresses working conditions, terms of employment, and wages and benefits. This information is also provided in the form of an employee handbook at the time of induction into the company. Subcontractors, including construction workers on site, are required to comply with all AHI labor requirements specified in contractual arrangements.

Employment relationships recognize the principals of non-discrimination and equal opportunity. The minimum employment age at AHI is 18 years. There is a plan for prevention and worker safety consistent with GOP regulatory requirements. Occupational health and safety at AHI's facilities is managed by designated health and safety managers. All employees in the company have to undergo a full training program at induction and subsequently on worker health and safety relevant to their job activity. The Safety Officer and Human Resources maintains permanent records of participation to ensure compliance. Facilities are audited annually by regulatory and insurance agencies. Workplace air quality and noise is monitored annually and is reported to be within acceptable limits.

- Pollution Prevention and Abatement:

The hospital site is located within a designated hospital zone in the Filinvest Industrial Park which provides essential infrastructure support such as electricity, potable water, sewer connections and wastewater treatment facilities. Water for potable use is supplied by Filinvest, and pretreated prior to use by AHI. Point of use water quality data is monitored for various operational areas within the hospital including kitchens, medical use and air handling systems.

Handling and disposal of medical materials and bio-hazardous wastes at AHI facilities complies with regulatory requirements of the Philippines Department of Health and consistent with good international industry practice. Infectious and pathological wastes, sharps and sharps containers are collected for treatment and disposal by a licensed vendor. These wastes are steam sterilized, dried and shredded before disposal in a secure landfill operated by the vendor. Radioactive wastes from the Radiology and Nuclear Medicine Department are pretreated and disposed in accordance with standard procedures of the Department of Health and the Philippines Nuclear Research Institute.

Wastewater from laboratories, operating rooms and other facilities is pretreated prior to discharge to sewer, while sanitary wastewater is discharged directly to the sewer for further treatment at the Filinvest Industrial Park centralized wastewater treatment facility. Blow down from cooling towers and air handling units is discharged to the sewer. Stormwater from the site is also discharged to the sewer. The Filinvest Industrial Park centralized wastewater treatment facility has adequate capacity to treat wastewater from AHI. Quality of treated effluent from the centralized wastewater treatment facility meets regulatory requirements for discharge to surface water. Sludge and other wastewater treatment process residue from pretreatment at AHI facilities are disposed by licensed vendors. Solid waste from AHI which includes food wastes, used batteries, broken lamps, motor oils etc. is collected by licensed contractor for segregation, disposal and reuse.

Sources of air emission from AHI facilities include those from standby diesel generators for contingency power and discharge from HVAC systems. Air emissions are monitored and comply with applicable Department of Environment and Natural Resources regulatory requirements.

- Community Health, Safety and Security:

Engineering controls and staff training are provided to mitigate risks and issues associated with AHI's operation of the hospital and associated infrastructure, which also includes storage and transport of hazardous wastes, chemicals and gases. The use and storage of chemicals at AHI facilities is subject to stringent safety standards. AHI ensures handling and storage areas provide for adequate containment and neutralizing systems to minimize the impact of release. Consistent with local regulatory requirements, AHI has emergency prevention and control plans which specifies responsibilities, ensures appropriate response equipment and materials are in place, and detail a set of procedures to be followed to minimize the harm of any potential accident.

Moving forward, AHI will:

- develop an emergency response plan for subcontracted operations such as transport of hazardous materials, and
- add a community involvement component that addresses appropriate behavior and safety measures to be implemented in the event of any potential accident.

IFC PROJECTS

RECENTLY DISCLOSED