The senior secured loan of up to USD 25,000,000 to JSC Georgia Healthcare Group ("GHG") consisting of (i) a committed tranche of USD 10,000,000 to be used for the refinancing of the remaining exposure under the Resilience Framework ("'RF") Loan provided by the Bank; and (ii) an uncommitted tranche of USD 15,000,000 to finance part of the minority shareholder buyout of GHG's pharmaceutical business.
The committed USD 10,000,000 under the Project will refinance the remaining exposure under the RF Loan provided by the Bank as part of its' response to the COVID-19 pandemic. The proceeds of the RF loan were originally used to fund short-term working capital needs as well as critical capital expenditures required for the GHG's important role in fighting COVID-19 virus pandemic. The proposed transaction will refinance the capex portion of the RF loan in order to match financing with long-term nature of the capital expenditures undertaken by GHG. The uncommitted USD 15,000,000 under the Project will partially finance the minority shareholder buyout of GHG's pharmaceutical business, JSC Gepha.
The transition impact of the project is based on the Competitive and Inclusive qualities.
Under the Competitive quality, the project will lead to better quality of healthcare services through significant improvements to practices for the prevention and mitigation of antimicrobial resistance (AMR) across all the relevant facilities of the client.
Under the Inclusive quality, the project will improve access to specialist nursing skills among Georgia's healthcare workforce through the development of new, internally certified training programmes on in-hospital care, addressing ongoing and life-threatening skills gaps within the sector. The new training programmes will broaden career opportunities for Georgia's medical professionals while improving standards of care. The project will furthermore establish a public-private partnership platform to bolster and modernise human capital development within Georgia's healthcare workforce in partnership with the Investors' Council, healthcare providers and related public authorities.
GEORGIA HEALTHCARE GROUP JSC
JSC Georgia Healthcare Group, a joint stock company incorporated in Georgia, is the largest healthcare provider operating a highly-integrated business model which includes hospitals, clinics, pharmaceuticals, medical insurance and diagnostics laboratory.
EBRD Finance Summary
Total Project Cost
EBRD's additionality stems from offering financing that is not easily available in the market from commercial sources on comparable terms and conditions and helping the client achieve higher equal opportunities standards as well as higher quality standards in the area of Antimicrobial Resistance.
Environmental and Social Summary
Categorised B (2019ESP). GHG is an existing client with several preceding projects, and their E&S performance has been satisfactory to date. For the most recent project with GHG, ESD reviewed the corporate Environmental & Social Due Diligence (ESDD) Questionnaire in April 2020. In addition, ESD reviewed GHG's annual environmental report in December 2021. The most recent monitoring visit to their hospital and laboratory funded by the Bank was in October 2019 in conjunction with an Antibiotics Resistance (AMR) Risk Management workshop following a technical hospital audit. For this new project, ESDD was carried out by ESD by reviewing the status of the existing Environmental & Social Action Plan (ESAP) associated with the
previous projects with the client. The ESDD shows that GHG has capacities to implement the new project in compliance with PRs. An updated ESAP has been developed which needs to be agreed by the client prior to the Board. GHG is required to ensure that the project complies with EBRD PRs, to implements the updated ESAP as well as continue to submit an annual environmental and social report to the Bank.
The updated comprehensive ESAP reflects healthcare-specific health & safety of the patients and staff, the steady progress of the existing ESAP implementation and the context of the project as well as still required provisions to address the pandemic in the healthcare facility. It comprised of the continuing HR and OHS management, building life & fire safety management, environmental risk management including medical & hazardous waste and effulgent management and monitoring, respect of patient rights and AMR risk management including in-hospital infection prevention & control, antibiotics stewardship, laboratory capacity building and surveillance. On-line monitoring on GHG's engagement with Antimicrobial Resistance ("AMR") issues based on the 2019 AMR audit, and capacity building training is planned in coming months. Any gaps identified in the monitoring will be further supported by an additional e-learning medium-term training scheme. Those have been also incorporated into the ESAP. The Bank will monitor the project by reviewing an annual environmental and social report as well as a visit if deemed necessary.
Company Contact Information
142 Beliashvili St. Tbilisi 0159, Georgia.
PSD last updated
23 Jun 2022
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