PROJECT

Projects

Environmental & Social Review Summary

Project Number

37574

Company Name

AVERSI-PHARMA LTD

Date ESRS Disclosed

Jul 19, 2016

Country

Georgia

Region

Europe

Last Updated Date

Nov 22, 2024

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Nov 4, 2016
Signed : Dec 12, 2016
Invested : Dec 29, 2016

Sector

Hospitals and Clinics

Industry

Health, Education and Life Sciences

Department

Regional Industry MAS LAC & EUR

Project Description

Aversi Pharma Ltd (“Aversi Pharma” or the “company”), a flagship company of the Aversi Group, is one of the largest healthcare companies in Georgia, managing and operating pharmaceutical wholesale, retail, hospital and insurance business units. The company, which is a potential borrower for IFC financing, plans to expand its hospital business by investing in oncology, advanced diagnostics and advanced surgery projects.

The company operates its outpatient and inpatient health care services under 6 hospital brands: Aversi Clinic Ltd (“Aversi Clinic”) with 11 locations in Tbilisi and the regions; Eristavi Center of Experimental and Clinical Surgery JSC (“Eristavi Clinic”) with one facility in Tbilisi; Medcapital Ltd, with 4 locations, Medalpha Ltd with 5 locations in Tbilisi and regions, Infectious Disease Hospital, with one location and New Life Ltd, with one location in Tbilisi. In total, Aversi holds and manages 23 existing clinics and hospitals.

The “project” consists of expansion of Aversi’s healthcare services over the next three years. The total cost of the project is estimated at around € 26 million and mainly includes  purchasing of oncology diagnostic (i.e., Positron emission tomography–computed tomography “PET-CT”, cyclotron), radiotherapy (i.e., linear accelerators) equipment and other medical equipment (e.g., magnetic resonance imaging “MRI”, ultrasound “US” and equipment for advanced surgery theaters/rooms, such as angiography suites and hybrid operating rooms) to be installed in recently renovated Eristavi Clinic and Aversi Clinic’s main hospital extension, which is currently under construction in Tbilisi. In addition, the project includes the construction of a new out-patient clinic in Telavi, located in the Khaketi region (“Telavi Clinic”). IFC is considering to invest a corporate A-loan of up to € 13 million to Aversi Pharma and the rest of the total project cost is anticipated to be financed through other financial institutions and company’s own funds.

Telavi Clinic will have 5 floors, covering approximately 3,300 m2, and be developed in two phases: (i) construction of the building and investing in MRI/CT/ultrasound and laboratory equipment to provide diagnostics and laboratory services; and (ii) gradual development of other outpatient services. The construction started in early February and expected to be completed by the second half of 2017.

Overview of IFC's Scope of Review

The scope of review for this project included assessment of the company’s environmental and social (E&S) management capacity and performance in health care sector in relation to IFC’s Performance Standards (PS), national regulatory requirements and relevant World Bank Group’s (WBG) Environmental Health and Safety (EHS) Guidelines. The review relied on documents and reports made available by the company and observation and interviews by IFC staff during the site visit. IFC’s appraisal was conducted on February 24-26, 2016 and included meetings at Aversi Clinic’s main hospital in Tbilisi and site visits to Eristavi Clinic and construction site of Aversi Clinic’s new hospital in Telavi.

IFC’s appraisal team interviews included: corporate investment officer of Aversi Pharma; general directors, medical directors, and chief epidemiologists of Aversi and Eristavi clinics; quality and ISO compliance manager, the head of laboratory services and business development manager of Aversi Clinic; and head of administration, head of supervisory board, chief executive officer, chief lawyer and chief nurse of Eristavi Clinic.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan