| Project description |
| MedLife is a successful private healthcare provider owned by a family of physicians and bankers and headquartered in Bucharest. The company currently offers a wide range of medical care services through its 11 medical clinics in Bucharest and Ploiesti. MedLife also operates 3 medical laboratories in Bucharest as well as one of the largest private medical facilities in Romania, Hyperclinica. MedLife is currently building a 100 bed hospital adjacent to Hyperclinica, which is expected to open in November 2006. The IFC financing will allow MedLife to expand their high quality medical services to other areas of Romania, partially financing the development of new 40 to 50 bed hospital/clinic combinations (as in Bucharest) opening in Constanta, Timisoara, Brasov, Iasi, and Cluj over the next 2 to 3 years. All the sites for these developments have been purchased and these will all be greenfield developments (except the clinic in Timisoara which will be in a renovated building). The buildings, medical facilities, equipment, medical care and support have been established to meet both Romanian and international standards. |
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| Project sponsor and major shareholders of project company |
MedLife’s shareholders are the Marcu family:
- Mihail Marcu (40% owner), son of founder Mihaela Cristescu, had 10+ years of finance experience before joining MedLife as General Manager, in 2004;
- Nicolae Marcu (30% owner), son of founder Mihaela Cristescu, has 10+ years of experience as psychiatric physician; and
- Mihaela Gabriela Cristescu (30% owner), founder of MedLife and a well-known pediatrician in Bucharest with almost 40 years of experience as a pediatric physician. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is expected to be up to $26.0 million. IFC is considering an investment of up to $13.0 million, comprised of up to $5.0 million equity and an up to $8.0 million senior loan for IFC’s own account. |
| Location of project and description of site |
| MedLife is headquartered in central Bucharest, Romania on Calea Grivitei, Nr. 365, Sector 1. This is also the site of Hyperclinica and the soon to be opened Memorial Hospital. The company plans to open regional clinics and hospitals in Constanta, Timisoara, Brasov, Iasi, and Cluj. Each site will be located in a commercial area of each city with convenient public transportation. |
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| Anticipated development impact of the project |
This project will:
- increase the supply of higher quality hospital services in Romania;
- relieve some of the burden currently placed on the public health system;
- allow public health resources to focus on lower income segments of the population and emergency services;
- improve employment conditions of many companies in Romania;
- establish “best practices” for the medical community;
- encourage other foreign and Romanian investors to participate in the modernization of the industry;
- help to establish an environment that favors Romania’s transition towards a full-fledged EU member country. |
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| IFC's expected development contribution |
IFC will contribute:
- experience and expertise in the hospital sector;
- network of global industry contacts; and
- credibility we bring to the project.
By partnering with MedLife, IFC will:
- help stimulate the growth of the private healthcare sector in Romania;
- support the delivery of higher quality services to the interior of the country; and
- help establish benchmarks for delivery of private health services in the country.
In addition, current shareholders have started, in consultation with IFC, an extensive program for strengthening corporate governance designed to bring more transparency and accountability to decision making and prepare the company to access the capital markets at a later stage. |
| Environmental and social issues - Category B |
The project involves the construction and operation of a number of medical facilities in urban settings in the larger cities in Romania. Based on the site visit and discussions with MedLife’s management, IFC believes this project will have limited potential adverse environmental and social impacts. Also any impacts will be few in number, site-specific, reversible and easily addressed through agreed mitigation measures. As a result this is a Category B project.
To view the environmental documents for this project, click here |
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| For inquiries about the project, contact: |
Mihail Marcu, General Manager
Calea Grivitei 365, sector 1
Bucuresti, Romania
Tel: +40/01(0)209.40.30
ESRS has been released and will be publicly available at MedLife's main Hyperclinica in Bucharest, at a publicly accessible place at the main entrance. |
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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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