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| Andalusia Hospitals |
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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 | 25918 |
| Company name | Arabian Andalusia Holding Company |
| Country | Egypt |
| Sector | Health Care |
| Environmental category | B |
| Department | Health and Education |
| Status | Active |
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| Date SPI disclosed | June 18, 2007 |
| Projected board date | July 20, 2007 |
| Previous Events | Invested: January 10, 2008
Signed: October 23, 2007
Approved: August 16, 2007 |
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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 project consists of financing the expansion in Egypt of Andalusia Group (Andalusia or the Group). Andalusia is a hospital and healthcare company established in 1984 with hospital operations in Jeddah, Saudi Arabia and Alexandria, Egypt. The company intends to expand its operations in Alexandria, enter the Cairo market, and establish a nursing academy to address the chronic shortage of nurses in the region. |
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| Project sponsor and major shareholders of project company |
The project is backed by Andalusia, a privately owned company which currently operates 180 beds across Jeddah and Alexandria and provides services to 430,000 patients a year. The Group has adopted the vision:
- To be the leading “total solution” provider of health care organizations in the Middle East;
- To provide the industry with corporate governance best-practice, knowledge management repository, human resources development, leadership incubators, the industry’s quality best-practices, and information technology tools. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $48 million, which will fund the expansion of operations in Alexandria, the completion of a new hospital in Cairo, and the establishment of a nursing academy in Egypt. The proposed IFC investment is an A loan for IFC’s own account of up to $15 million and an equity investment of up to $10 million. |
| Location of project and description of site |
| Andalusia’s existing operations in Alexandria, which will be expanded, are centrally located near the Medical University of Alexandria. The project site in Cairo is yet to be determined but will likely be centrally located as well. |
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| Anticipated development impact of the project |
The expansion of Andalusia’s services in Egypt will contribute to:
- expanding access to healthcare Egypt, which is experiencing increasing levels of demand;
- relieve some of the growing burden currently placed on the public health;
- offering increased employment opportunities to local healthcare professionals, and others in a superior healthcare environment;
- providing a benchmark of service quality that will potentially raise the general standards of healthcare elsewhere in each country; and
- expand the supply of qualified nursing professionals in Egypt. |
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| IFC's expected development contribution |
IFC contribution to this project is expected to:
- help stimulate the delivery of high quality healthcare services in Egypt
- support south-south investments amongst MENA countries;
- help establish benchmarks for delivery of private health services in Egypt; and
- help address the shortage of qualified nursing staff in Egypt and across the MENA region. |
| Environmental and social issues - Category B |
IFC's early review of this investment has identified the following environmental, social, health and safety issues:
- site acquisition and characteristics;
- air emissions and their treatment;
- potable water supply and treatment;
- liquid effluent treatment and disposal;
- waste management including medical and bio-hazardous 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.
In addition, the hospital will be required to develop and implement a corporate-wide, integrated environmental and health and safety management system. Issues such as emergency care for the poor and disadvantaged and the role of the hospital in the community will also be addressed during project appraisal. While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts that must be managed in a manner consistent with the following Performance Standards (PS):
- PS1: Social and Environmental Assessment and Management Systems;
- PS2: Labor and Working Conditions;
- PS3: Pollution Prevention and Abatement;
- PS4: Community Health, Safety and Security; and
- PS5: Land Acquisition and Involuntary Resettlement.
Based on this early review, it is anticipated that this project will require 30 days disclosure by IFC prior to Board and has been provisionally categorized as B. |
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| For inquiries about the project, contact: |
Dr. Hazem Zagzoug, Deputy Chairman & CEO
Andalusia Group
PO Box 10153
Jeddah, Saudi Arabia 21433
Telephone: 966 2 6727399
Fax: 966 2 6727499 |
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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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