25069 - MedLife

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental & Social Review Summary

Project Number

25069

Company Name

MED LIFE S.A.

Date ESRS Disclosed

Aug 7, 2006

Country

Romania

Region

Europe

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Oct 13, 2006
Signed : Oct 16, 2006
Invested : Nov 13, 2006

Sector

Hospitals and Clinics

Industry

Health, Education and Life Sciences

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

MedLife is a successful private healthcare provider owned by a family of physicians and bankers and headquartered in Bucharest. The company currently offers a wide range of medical care services through its 11 medical clinics in Bucharest and Ploiesti. MedLife also operates 3 medical laboratories in Bucharest as well as one of the largest private medical facilities in Romania, Hyperclinica. MedLife is currently building a 100 bed hospital adjacent to Hyperclinica, with the new hospital to be opened by November 2006.

The IFC financing will allow MedLife to expand their high quality medical services to other areas of Romania and include new 40 to 50 bed hospital/clinic combinations (as in Bucharest) opening in Constanta, Timisoara, Brasov, Iasi, and Cluj over the next 2 to 3 years. All the sites for these developments have been purchased and these will all be greenfield developments (except the clinic in Timisoara which will be in a renovated building). The buildings, medical facilities, equipment, medical care and support have been established to meet both Romanian and international standards.

Overview of IFC's Scope of Review

IFC’s review of this project involved analyzing project documentation provided by MedLife as well as a site visit to MedLife’s medical facilities in Bucharest, including the hospital which is currently under construction. Meetings were held with company management in Bucharest including the General Manager, Medical Director, Human Resource Director, and MedLife’s project architect.

E & S Project Categorization and Applicable Standard

The following Performance Standards (PS) apply to this project:

- PS 1 Social and Environmental Assessment and Management Systems;
- PS 2 Labor and Working Conditions;
- PS 3 Pollution Prevention and Abatement;
- PS 4 Community Health, Safety and Security; and
- PS 5 Land Acquisition and Involuntary Resettlement.

- PS 6 Biodiversity Conservation and Sustainable Natural Resource Management does not apply to this project given the location of the new medical facilities (i.e. urban settings).

- PS 7 Indigenous People (IP) does not apply as there are no IPs involved or impacted by this project. PS 8 Cultural Heritage does not apply as there is no cultural heritage impacted by this project.

The relevant PSs have been provided to and discussed with the client, as have the relevant IFC Guidelines (i.e. Healthcare Facilities Guidelines, May 2003; General Environmental Guidelines, July 1998; Hazardous Materials Management Guidelines, December 2001; Occupational Health and Safety Guidelines, June 2003; and Life and Fire Safety Guidelines, December 2002).

The project involves the construction and operation of a number of medical facilities in urban settings in the larger cities in Romania. Based on the site visit and discussions with MedLife’s management, IFC believes this project will have limited potential adverse environmental and social impacts. Also any impacts will be few in number, site-specific, reversible and easily addressed through agreed mitigation measures. As a result this is a Category B project.

Environmental and Social Mitigation Measures

The client has presented plans to address any impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements of Romania as well as the IFC environmental and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the managers of the project is summarized in the paragraphs that follow:

The existing and proposed new medical facilities of MedLife pose only a very limited impact on the environment and the neighboring communities. Medical facilities in Romania located in urban areas are permitted by the Government as follows:

- Planning Permission from the Municipality which includes approval on details such a use of natural gas and electricity, fire protection, police, traffic flow and impact, and sanitary conditions (e.g. water supply, wastewater discharge, and handling and disposal of garbage and red bag wastes);

- Planning Permission and finalization of the project design allows the Municipality to issue the final authorization to build (together with the necessary environment permits);

- during construction inspections are carried out regularly by the Government authorities, the main contractor, and the owners representative;

- once the building is completed satisfactorily, the Municipality issues the Final Authorization (the building can now open to the public); and

- as these are medical facilities, the Government of Romania then provides the necessary authorization for the medical staff and the medical facilities themselves.

The Municipal permits follow specific requirements laid down by the Government of Romania. The existing facilities in Bucharest have all successfully been through this thorough permitting process and the new facilities in Brasov, Constanta, Timisoara, Cluj, and Iasi will also be permitted in the same manner.

MedLife is already operating a number of clinics (including the large Hyperclinica), medical laboratories, and is building a 100 bed hospital. As a result MedLife already has in place a strong management team and has developed and is implementing policies and procedures to ensure the medical services they provide comply with Romanian and international standards. MedLife’s General Manager provides strong leadership and commitment to high quality throughout the organization. MedLife already has in place the necessary management plans and programs as well as the organization and teams of well qualified professionals to ensure a quality product which complies with international, Romanian and IFC standards.

MedLife intends to hire a new engineer to supervise each construction project and this engineer will assist in the facilities operation once the construction is complete. The engineer will report to the General Manager (GM) during construction and the facilities GM, once operations begin. MedLife will use the same architect (Redin Abduraman of OMBA) and the same construction company for all their construction activities. As observed during the site visit, the standard of OHS on the construction site is good. Based on the requirements of the local permitting process, it is anticipated that this project with MedLife will comply with both Romanian and IFC environment, health and safety, and social requirements.

MedLife places a very high priority on hiring, training and retaining of high quality staff. The company’s operations are fully consistent with the new Romanian Labor Code and the Government inspects their operations regularly. MedLife has a detailed Human Resource policy that is provided to all employees when they begin employment. Salaries and benefits are excellent by the standards in Bucharest. The Board of MedLife approves staffing levels and job descriptions are prepared for new positions and advertised both externally and internally, a process that is both open and transparent. New employees attend 2 weeks of induction and job training. Employees have a collective agreement and individual employment contracts which are registered with the Government’s Department of Labor.

The company has established a grievance mechanism which is a requirement of the new Labor Code. MedLife has a labor committee made up of members from each department, voted/selected by the employees from that department. Each year the labor committee negotiates a new collective agreement with management. The company places a very high priority on internal and external training to maintain and improve their standards. MedLife prides itself on being an excellent place to work.

MedLife does have detailed occupational health and safety procedures in place. An independent company certified by the Government (Labor Department) has been retained by MedLife to identify work place risks, provide necessary staff training, and to monitor performance. Accidents are reported and necessary actions taken to address any problems. Buildings have all the required smoke and fire detection equipment with either fire extinguishers or, in the larger facilities, hose and reel fire fighting systems. MedLife has agreed to add sprinklers to their new Bucharest Hospital (under construction) as well as to all new clinics and hospitals. This is consistent with the requirements in IFC’s Life and Fire Safety Guidelines.

Raw water to the clinics and new hospital in Bucahrest is provided by the Municipality with MedLife then providing necessary additional water treatment prior to distribution to the medical facilities. Wastewater is discharged to the Bucharest city industrial wastewater sewer for treatment prior to discharge to the environment. MedLife has a very detailed procedure for handling wastes. Red bag waste is collected by MedLife staff and stored onsite. Licensed contractors collect this red bag waste every day for transport to a Government licensed incinerator for disposal. In addition laboratory and radiological wastes are also collected regularly by Government licensed contractors for proper treatment and disposal. Garbage is also collected every day by a licensed contractor and taken to a licensed landfill for disposal. The Government and City officials regularly inspect these systems to ensure they comply with Ministry of Environment requirements. Natural gas is used in the boilers. MedLife wishes to be as resource efficient as possible and has embarked on energy and water efficiency programs. MedLife plans to use a similar approach to water, wastewater, waste management and disposal, and resource efficiency at their new facilities elsewhere in Romania.

Stakeholder Engagement

MedLife as the largest provider of private medical services in Romania is already heavily involved in the community including:

- provision of packaged medical services for clients and to those with special needs (e.g. elderly, children);
- education to customers/clients on healthcare and quality of life issues;
- provision of high quality specialized services not available elsewhere in Romania; and
- selectively provision of subsidized services to the poor.

The proposed projects will have major positive benefit to the communities in which they operate. As a company that provides high quality medical services to the public, MedLife has an open door policy to the community and is very aware of the need to maintain and enhance their reputation in the community.

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Similar Projects

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

Press-Release

Related SII

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer