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| Asiri Hospital |
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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 | 28555 |
| Company name | Asiri Hospital Limited |
| Country |
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| Sector | Hospitals and Clinics |
| Environmental category | B |
| Department | Reg Manufact, Agri & Services, ASIA |
| Status | Active |
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| Date SPI disclosed | February 17, 2010 |
| Projected board date | March 19, 2010 |
| Previous Events | Invested: July 21, 2011
Signed: June 17, 2010
Approved: June 15, 2010 |
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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 purpose of the project is to (i) expand and transfer the operations of the existing 100-bed Asiri Central Hospitals Plc (“ACHP”) to a new 262-bed purpose built facility that will be owned by Central Hospital (Pvt) Limited (“CHL”); and (ii) restructure a portion of the total short-term debt of three hospitals in the Asiri Group (the “Group”): Asiri Hospital Limited (“AHL”), Asiri Surgical Hospital Plc (“ASHL”) and CHL to create a more efficient capital structure for the hospitals. |
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| Project sponsor and major shareholders of project company |
The project sponsors are (i) Mr. Ashok Pathirage, CEO of Soft Logic Holdings (Pvt) Limited (SLHL) and; (ii) SLHL, a publicly listed company, which began operations in 1991 in Sri Lanka as a software development company and has diversified into IT, various retail businesses, property development, engineering and healthcare. SLHL has equity investments in AHL, ASHL, ACHL and CHL.
Other shareholders in CHL are John Keells Holdings Limited and Aureos South Asia Fund LLC. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $68 million. IFC is proposing to finance about $10 million in A and/or C Loans for IFC’s own account with an additional $10 million through a syndicated B loan. |
| Location of project and description of site |
| CHL will be located on a 180.8 perch freehold land at No. 114, Norris Canal Road in Colombo 10, and is accessible by public and private transport. Three other Asiri hospitals are located within Colombo. In addition, there is a hospital in Matara called Asiri Hospital Matara (Private) Limited. Asiri Diagnostic Services has over 300 locations throughout Sri Lanka. |
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| Anticipated development impact of the project |
| The project is expected to have a strong development impact by: (i) increasing the access to quality medical care in Sri Lanka; (ii) demonstrating best patient and medical care practices; (iii) creating skilled job opportunities; (iv) generating an increase in taxes paid to government; and (v) enhancing the skills of staff through training provided. |
| IFC's expected development contribution |
| IFC's role and additionality will include (i) providing long-term financing that better matches the needs of the project and support Asiri Group's efforts to mobilize other lenders to complete the project financing; and (ii) providing value-added services which would include improving the corporate governance, environmental, social and insurance standards and operating practices of the hospital. |
| Environmental and social issues - Category B |
While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:
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;
PS 2: 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;
PS 3: 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
PS 4: 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
Complete details on IFC’s Environmental and Social assessment of this project may be found in the Environmental and Social Review Summary prepared by IFC, which also will be made publicly available on the IFC website. |
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| For inquiries about the project, contact: |
Ms. Sharmini Nimalasuria
No. 21 Kirimandala Mawatha,
Colombo 05, Sri Lanka
Telephone: 4524400
Email: info@asiri.lk |
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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 |
| Local access of project documentation |
Project information will be made available at the following location:
Ms Sharmini Nimalasuriya Director Finance Asiri Surgical Hospital PLC # 21, Kirimandala Mawatha Colombo-05. Email : sharmini@asiri. |
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