Translated version of this PSD: Arabic
Project description and objectives
The EBRD is considering an equity investment in Ibn Sina Pharma (the “company”), the second largest pharmaceutical distribution company in Egypt.
The proposed investment would support the company in growing its operations through expansion of its distribution network.
The project could have significant transition impact through setting standards of corporate governance and business conduct since the Bank would support the company in its efforts to improve standards including compliance with the Good Distribution Practice. Furthermore, the Project may help demonstrate increased efficiency of operations through improving the company’s logistics facilities and increasing economies of scale.
Ibn Sina Pharma is an Egyptian joint stock company established in 2000, and specialises in distribution of pharmaceutical products. The company is based in Cairo and operates a nation-wide network of pharmaceutical distribution outlets and warehouses.
Total project cost
EGP 383 million
Environmental and social categorisation, impact, and mitigation
Categorised B (2014 ESP). Environmental and social due diligence (ESDD) has shown that the impacts associated with the operation, and the expansion, of existing pharmaceutical distribution facilities are limited, generally site specific and addressed through the implementation of mitigation and management measures. Although no significant risks have been identified through the ESDD there are a number of areas where further improvements are required to bring the Company and its operations in line with the PRs.
These actions are included in an Environmental and Social Action Plan (ESAP) to address potential worker and community health and safety risks associated with operation of distribution vehicles, contractor health and safety risks during the construction/conversion of new distribution facilities as well as the need to further develop and formalise existing management procedures into an integrated management system. The ESAP has been agreed with the Company.
ESDD confirmed that the Company has in place various procedures to manage impacts and risks associated with its activities including transport and occupational health and safety risks and risks associated with the pharmaceutical products it distributes. These procedures are regarded as generally sufficient but will need to be formalised and expanded upon through development of an integrated management system (IMS) including the implementation of Good Distribution Practice (GDP) for the sector and the designation of specific personnel to manage the IMS. The Company already meets some GDP requirements. The Company is currently in the process of implementing a quality management system to be certified to ISO 9001 and this will be expanded to focus on environmental and health and safety through implementation of an ESAP.
Company HR provisions are generally in line with PR2 with respect to working and labour conditions and comply with Egyptian legislation. Worker health and safety provisions, including training, safe working conditions and the provision of personal protective equipment is regarded as sufficient. This approach to health and safety will need to be extended to contractors involved in the construction/conversion of new distribution facilities. Further the Company will be required to implement a procedure for accident/incident reporting and investigation including maintaining H&S statistics. Contractors will be require to develop a construction management plan for manage E&S risks associated with their activities and also comply with the Company’s and the Bank’s E&S requirements.
The Company has specific measures in place for the management and disposal of damaged/expired pharmaceuticals and other waste materials (packaging). Damaged pharmaceuticals are either returned to the supplier or disposed of by a licenced waste company. Product recall mechanisms are in place as are procedures for expiration date tracking. The Company operates a large transport fleet and has in place some procedures to manage potential risk areas associated with transportation. These procedures will be expanded into a formal traffic management system including driver training. In order to meet the Bank's information disclosure requirements, the Company will be required to develop a corporate stakeholder engagement plan and an accessible grievance mechanism. The Company will be required to report on the E&S performance on its operations, and the implementation of the ESAP, to the Bank on an annual basis.
Mr. Omar Abdel Gawad
Managing Director – Ibn Sina Pharma, Egypt
For business opportunities or procurement, contact the client company.
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP