The EBRD is financing the development of a new hospital in Tbilisi with a US$10 million loan to JSC Medical Corporation Evex (Evex) to establish a state-of-the-art facility in the Georgian capital.
Evex has been operating since 2009 and is fully owned by Georgia Healthcare Group (GHG) PLC. Established in 2015, GHG has become one of the leading private health care institutions in Georgia, successfully completing an initial public offering on the London Stock Exchange premium listing in November 2015.
The EBRD financing will allow Evex to renovate and refurbish the Deka hospital in Tbilisi by mid-2017. The new facilities will provide patients with faster, more modern emergency services and state-of-the-art equipment for general, interventional and cardiovascular surgery. Deka Hospital will be able to offer additional services such as oncology and radiology, for which demand currently exceeds supply, and become a full-scale multi-profile hospital with a total of 310 beds.
The investment is part of a wider development programme that includes the expansion of a network of clinics and the development of new health care services throughout the country.
The EBRD loan will be complemented by up to US$ 250,000 grant provided through the Bank’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme to support the installation of energy efficiency technologies such as condensing boilers, LED lighting, a solar photovoltaic plant and a building management system to control energy and water consumption. These measures will improve energy consumption and reduce CO2 emissions.
Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus said: “By investing in the renovation of hospitals we invest in people and their future and in improving their lives. This project will have a demonstration effect for a new generation of health care.”
“I am pleased to announce the successful completion of an important long-term funding transaction for our company, supporting the sustainable growth of our business. This is the first project for GHG with a development finance institution. It will help us renovate and launch a large health care facility, contributing to the successful implementation of our strategy. A long-term relationship with an institution such as the EBRD is important for our success as it brings significant knowledge and the sharing of experience, combined with stable funding,” added Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.
The EBRD is a leading institutional investor in Georgia. Since the start of its operations in the country, the Bank has invested over €2.6 billion in 190 projects in the financial, corporate, infrastructure and energy sectors, with 91 per cent of these investments in the private sector.