DFF - Project Andalusia

Location:

Egypt

Project number:

49372

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

10 Apr 2018

Status:

Disbursing

PSD disclosed:

11 Oct 2018

Translated version of this PSD: Arabic

Project Description

The provision of a senior loan to Andalusia Egypt Holding for Financial Investments (the "Company"), a closed joint stock company registered in Egypt, to finance its expansion in Egypt in order to provide better healthcare services to a higher number of patients in Cairo and Alexandria. (the "Project").

Project Objectives

The Bank will finance Company's expansion in Egypt through the construction of a new hospital and the expansion of an existing one in Cairo. The objective of the Bank financing is to support the Company to significantly increase the level of healthcare services and to reach a higher number of patients. In addition, the long term financing of the Bank aims to strengthen the balance sheet of the Company.

Transition Impact

  • The project is expected to support competitive Transition Impact by improving quality of services beyond levels existing in the market; specifically by building a new greenfield hospital in Cairo; expected to be JCI certified; a benchmark currently rare in the market.
     
  • The project is expected to support resilient transition quality by supporting strengthening of the balance sheet through financial restructuring. Short term debts will be refinanced to provide a better match of assets and liabilities of the company.

Client Information

ANDALUSIA EGYPT HOLDING FOR FINANCIAL INVESTMENTS SAE

ANDALUSIA GROUP FOR MEDICAL SERVICES

Andalusia Group for Medical Services was founded in 1984 by the entrepreneur Dr. Darweesh Zagzoug as a single hospital in Jeddah, Saudi Arabia; and grown over 32 years to own and manage several healthcare facilities in Saudi Arabia and Egypt. It is currently one of the largest hospitals operator in Egypt.

EBRD Finance Summary

USD 24,000,000.00

Total Project Cost

USD 38,700,000.00

Environmental and Social Summary

Categorised B (ESP 2014) Environmental & social due diligence (ESDD) showed that the client's current operation is in compliance with applicable national environmental and social law and that the Client has adequate environmental and social risk management capacities to ensure the project's compliance with EBRD PRs. An Environmental and Social Action Plan (ESAP) has been developed based on the ESDD to address labour and construction worker occupational and health safety issues, life and fire safety issues of the building extension and the new building construction and continuous implementation of infection control and antibiotics stewardship. The ESAP will need to be agreed prior to signing. There is no GET component associated with the project.

Environmental and social issues associated with the expansion of bed capacity in existing hospitals in Alexandria and Cairo (from 240 beds to 490 beds) and construction of a new green-field hospital (170 beds) in Cairo can be readily identified and addressed by adequate mitigation measures.

ESDD carried out by ESD staff included the reviews of the completed ESDD Questionnaires and the 2014 Annual Environmental and Social Report (AESR) submitted to IFC, a site visit and discussion with the client. The ESDD specifically showed the following. Their environmental and social risk management system is in line with PR1. Their HR procedure including adherence to equal treatment and a grievance mechanism and OHS procedures are in line with PR2 and PR4. The client's overarching environmental management including solid and medical waste management is in line with PR3. Their life and fire safety provisions for the existing hospitals are in compliance with the national law. For their new greenfield hospital building, the client will adopt a sprinkler at each patient room in accordance with the new fire code. There are no biodiversity, cultural heritage and resettlement and economic displacement issues associated with the project. Monitoring will be
carried out through annual reports and site visits as necessary.

Technical Cooperation

None.

Company Contact Information

Mr. Ahmed Fouda
Fouda.Ahmed@Andalusiagroup.net
+201004023963
Business opportunities

 

Business opportunities

For business opportunities or procurement, contact the client company.

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