Max Phase II

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	25805
Company name	Max Healthcare Institute Limted
Country	India
Sector	Health Care
Environmental category	B
Department	Health and Education
Status	Active

Date SPI disclosed	March 13, 2007
Projected board date	May 10, 2007
Date revised SPI disclosed	April 2, 2007
Previous Events	Invested: July 20, 2007 Signed: June 29, 2007 Approved: May 24, 2007

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

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

The project consists of financing the expansion of Max Healthcare Institute (Max Healthcare or the company) in India over the next two to four years. Max Healthcare currently operates five hospitals primarily in the North Capital Region, which includes New Delhi and its approximate surroundings. The project includes adding about 452 beds to its existing 742 beds capacity and aims to address the strong demand for quality healthcare services in India and particularly in Delhi. Max Healthcare plans to expand its presence to about 1200 beds by 2010.

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 NCR and beyond Delhi. 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 4500 jobs (medical industry and during the construction phase).

IFC's expected development contribution

IFC’s equity investment would provide the company critical ‘breathing space’ in its important ramp-up growth period. The Sponsor and Company also value IFC’s global experience in financing healthcare companies and its expertise in and knowledge of the private healthcare sector in developing countries. It also recognizes that IFC, as a widely respected international financial institution, would bring credibility and discipline to the company as it approaches its proposed IPO. Further, IFC would be able to contribute to improving the corporate governance and environmental, social and insurance standards and operating practices of the company’s hospitals, in which the Sponsor has expressed interest.

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;

- 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.

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.

Environmental Documents will be made accessible at the following location:

Max House
3rd Floor, 1, Dr. Jha Marg, Okhla Phase III
New Delhi, 110-020

IFC PROJECTS