Humania

Location:

Regional

Project number:

50583

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

11 Dec 2019

Status:

Concept Reviewed

PSD disclosed:

25 Oct 2019

Project Description

A Commodity Murabaha financing in the amount of up to USD 20 million (the "Facility") in favour of the operating subsidiaries of Humania North Africa Holding Company, a holding platform incorporated in Dubai International Financial Centre (DIFC) ("Humania"), with a 10 year tenor.

Project Objectives

Bait Al Batterjee Medical Company Limited (the "Sponsor" or "BAB") is building a healthcare platform ("Humania") focused on hospitals and clinics in North Africa. The EBRD, together with the IFC (International Finance Cooperation), OFID (OPEC Fund for International Development) and Finfund (Finnish Fund for Industrial Cooperation Ltd.), will finance the platform's construction and operation of (i) a greenfield general hospital in Alexandra, Egypt and (ii) a greenfield general hospital in Casablanca, Morocco (collectively, the "Project").

Transition Impact

The transition impact of the proposed project will be derived from the following qualities:

  • Competitive: The project will lead to an improved quality of services (beyond the current local standards) and seek a reputable internationally recognised certification for each of the hospitals (Joint Commission International "JCI");
     
  • Green: The project will be developed at standards beyond prevailing market norms in the healthcare sector in the region in terms of energy, water and construction material efficiency (as both hospitals will be certified under the EDGE (Excellence in Design for Greater Efficiencies) Green Building Certification).

Client Information

BATTERJEYA MEDICAL COMPANY

Al Batterjia Medical SAE and Batterjia Morocco SARLAU ("Borrowers"):

The Borrowers are fully owned operating subsidiaries of Humania. The Borrowers will own greenfield hospitals in Alexandria, Egypt and Casablanca, Morocco.

Bait Al Batterjee Medical Company Limited (the "Sponsor" or "BAB").

The Sponsor is one of the largest healthcare providers in the Gulf Cooperation Council (GCC) countries operating under the brand name "Saudi German Hospital ("SGH"). BAB operates over 2,500 hospital beds and employs over 12,000 people.

EBRD Finance Summary

USD 20,000,000.00

The proceeds will finance capital expenditure of (i) a greenfield general hospital in Alexandria, Egypt and (ii) a greenfield general hospital in Casablanca, Morocco.

Total Project Cost

USD 360,000,000.00

Environmental and Social Summary

Categorised B under the 2014 ESP. Environmental & Social (ES) issues associated with the construction and operation of a 208-bed hospital in Alexandria and a 150-210 bed green-field hospital in Zenata Eco-city in Casablanca, Morocco can be addressed by standard mitigation measures. The client is an existing client of IFC, and IFC has previously undertaken comprehensive Environmental and Social Due Diligence (ESDD) on the Project. The Bank's ESDD, carried out by ESD, was based on the review of the project's Data Room, IFC's ESDD and Environmental & Social Action Plan (ESAP) as well as a site visit to Alexandria site and discussion with the Client management. The Client has adequate ES risk management capacities to implement the project in accordance with EBRD's PR requirements. For the project, the Client is required to comply with EBRD PRs, IFC Environmental, Health & Safety Guideline for Healthcare Facilities (2007) and the updated ESAP including Antibiotics Stewardship as well as submit an annual E&S report to the Bank. 

The ESDD showed the following. The Client, as a Group, has adequate environmental and social risk management capacities. Formal procedures covering environment, infection control, HR, occupational health & safety (OHS) and life& fire safety from the existing hospital in Cairo will be applied for the two new hospitals. The HR & OHS policy of the hospital in Cairo are in line with PR2 & PR4 and life and fire safety provisions are in compliance with the US National Fire Protection Association (NFPA).  Like the hospital in Cairo, the two new hospitals will be accredited with international hospital management accreditation or Joint Commission International (JCI).  The Groups' hospital construction arm, IHCC, is certified with ISO9001:2015, ISO1400:2015 and ISO45001: 2018 and IHCC's environmental, construction labour, health and safety, chance finding management procedures will be applied for the new hospitals construction in Alexandria and in Zenata Eco-city in Morocco.; Construction permits have been given to the Alexandria Hospital and an E&S Assessment will be carried out for the one in Zenata Eco-city in accordance with good international practice.  For the construction in Alexandria contractor legal obligations and monitoring are in place and the same will be applied for the hospital in Eco-city in due course. PR6 is not applicable to either locations.

One specific issue relates to PR5, Land Acquisition, Involuntary Resettlement & Economic Displacement.  The proposed greenfield hospital site in Casablanca will be built on a 5 hectare parcel provided by the Societe d'Amenagment de Zenata (SAZ), the government agency responsible for the 1,800 hectare Eco-city development. The Eco-city development requires the physical displacement of 31,000 people in nearly 9000 dwellings. Over 90% of these residents are informal settlers. The resettlement process for the Eco-city development is being carried out in accordance with the European Investment Bank' standards, and a Resettlement Action Plan (RAP) has been developed which meets the requirements of the European Investment Bank's Environmental and Social Standard 6 and the World Bank's Operational Policy 4.12 on Involuntary Resettlement. These standards capture the requirements of EBRD's PR5. The land specifically provided to the hospital has been expropriated by the Moroccan Government from nine private owners. The Client has confirmed that all have been duly compensated. In addition, 24 families of informal settlers occupy the site. Each family will be provided a serviced parcel of land on which they can construct their own dwelling or a serviced flat in a block of apartments. SAZ is also constructing a block of stalls for informal settlers to continue their livelihoods. As part of the ESAP, the Client will be required to engage a consultant to assess the resettlement and the effectiveness of livelihoods restoration activities in order to ensure compliance with PR5. Should any gaps be identified, the Client will be required to develop and implement a remedial action plan.

IFC's ESAP agreed by the client has been updated with the addition of antibiotics stewardship & JCI accreditations for the two hospitals to ensure the Project's compliance with EBRD's PRs as well as IFC EHS Guidelines. It addresses the following: a third-party life and fire safety audit for the new hospitals; a third party Consultant's review of resettlement related to the new hospital project in Zenata Eco-city as well as an E&S Assessment of the Eco-city hospital subproject; assignment of a quality, environment, health and safety manager to be responsible to enhance & implement an corporate E&S management system at each asset; development of corporate HR policy to be consistently implemented across the assets including an additional clause indicating employees right to form and join workers' organisation of their choice; compliance with effluent standards and installation of onsite treatment facility if required.

Technical Cooperation

Antimicrobial Stewardship (AS) Capacity Building Technical Co-operation (TC) is being considered to address Antimicrobial Resistance (AMR) proliferation which is a global thread to the public health as well as a critical element of hospital risk management to protect patients' safety across the globe.

Company Contact Information

Aamir Rehan
Corp.md@humaniacap.com
 

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