MS Pharma Loan

Location:

Jordan

Project number:

45636

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

17 Dec 2014

Status:

Repaying

PSD disclosed:

24 Oct 2014

Project Description

The EBRD is considering providing a loan totaling up to USD 30 million to MS Pharma WLL, Bahrain, to finance the investment programme for the MS Pharma’s subsidiaries in Jordan and Morocco, active in manufacturing of generic pharmaceutical products. The project will enable MS Pharma to increase its capacity and build a differentiated product portfolio in chronic diseases. EBRD funding will be used to finance capital expenditures and working capital.

Transition Impact

Transfer of skills: as part of the project, MS Pharma intends to purchase new licences and acquire new technologies for the production of more complex, innovative products. In addition, the upgrade and launch of the MS Pharma injectable plant in Jordan will introduce modern production technologies in Jordan and the region.

The Client

MS Pharma WLL is a limited liability company incorporated in the Kingdom of Bahrain, active in manufacturing and trade of generic pharmaceuticals in Jordan, Morocco, Algeria, Iraq and other MENA (Middle East and North Africa) countries.

EBRD Finance

A senior loan of up to USD 30 million. The EBRD loan will be complemented by MS Pharma’s own funding.

Project Cost

USD 30 million.

Environmental Impact

Category B in accordance with the EBRD Environmental and Social Policy (2008). Potential adverse future environmental and social impacts of the upgrades at the Client’s Jordan and Morocco pharmaceuticals formulation plants are site-specific and will be mitigated via appropriate management and mitigation measures.

Environmental and social due diligence (ESDD) included a review of the Client’s corporate E&S policies and management systems via a E&S questionnaire, existing audit reports and other support materials analysis, and a site visit to two of the Group’s manufacturing facilities in Jordan. To ensure compliance with the Bank’s Performance Requirements (PR’s) an Environmental and Social Action Plan (ESAP) is to be agreed with the Client prior to the Board of Directors review of the Project.

The Group complies with ISO 9001 quality standards and its United Pharmaceutical plant in Amman complies with current Good Manufacturing Practice (cGMP) standards, ensuring products safety and adequate pharmacovigilance practices. The Company is committed to seek GMP approval for its Jordanian MS Injectables plant and Moroccan formulation plant in future that would be also required by the ESAP. The ESDD focused on corporate systems that needs strengthening with HSE capacity and on formulation plant that has limited environmental issues due to the nature of the industrial processes involving mainly mixing, drying and moulding of tablets and preparation of non-sterile solutions. The United Pharma plant is equipped with an HVAC (Heating, Ventilation and Air Conditioning) system to abate the dust emissions and to provide required air circulation for clean room, and with a Reverse Osmosis water preparation system for the liquid forms manufacturing.  

The construction of the flammable materials warehouse to supply MS Injectables plant in Amman is expected mainly to be associated with such environmental impacts as noise, dust, waste disposal and traffic disturbance. As per national legislation the project requires an EIA to be carried out and will be subject to a formal environmental permitting process that would be required by the ESAP to be completed prior to the start of construction.

The Company will provide the Bank with an annual environmental and social reports (AESR), including updates on the ESAP implementation. The Bank will evaluate the Project’s environmental and social performance in accordance with the Bank’s PR’s through reviewing the Client reporting and undertake periodic monitoring visits when deemed appropriate.

Technical Cooperation

None.

Company Contact

MS Pharma: Emad Kakish
Tel: + 962 6 582 79 99
Email: Emad.Kakish@mspharma.com
Website: www.mspharma.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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Email: projectenquiries@ebrd.com

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