Weigao Holding Company Limited (“Weigao Holding”, or the “Sponsor”), headquartered in Weihai, Shandong province, is a private company that engages in a number of businesses including pharmaceutical and medical devices.

Weigao is 48 percent owned by Weigao Holding with the remaining 52 percent owned by the Company’s management and public shareholders.

Total Project cost is expected to be US$224 million and IFC is considering the provision of a debt financing of RMB600 million (approximately US$98 million equivalent).

97.67 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	97.67
Equity

* These investment figures are indicative

The Company’s headquarter, manufacturing facilities and dialysis centers are principally located in Weihai, Shandong province.

1. Increase access to quality and affordable dialysis medical devices. The Project will support an established domestic medical device manufacturer to expand its manufacturing capabilities in dialysis medical device. This is expected to increase the availability and affordability of dialysis medical services.

2. Promote private sector participation in the provision of dialysis treatment. The successful implementation of the Project will demonstrate to other investors the financial viability of a private sector operated standalone dialysis center, which is expected to encourage private sector participation in this area.

3. Create skilled employment opportunities. The Project will create employment opportunities for a number of specialty healthcare positions and provide training and support to its medical staff, including for doctors training for nephrologists.

4. Benefits to the local economy and local linkages: The Project will help create demand for locally-sourced materials, services and labor, majority of which are likely to be provided by small and medium enterprises.

IFC''s additionality includes: (i) provision of long-term financing that is suited for the cash flow generation profile of the Project; (ii) sharing of global industry expertise in healthcare services as the Company expands into dialysis treatment; and (iii) sharing of international best practices in environmental and social management.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.



Key Environmental and Social (“E&S”) risks and issues related to this Project include: adequate social and environmental assessment of the impacts of the Project; the Company’s capacity and systems to manage its social, environmental, health and safety aspects of its operations in compliance with legal requirements as well as IFC Performance Standards and World Bank Group Environmental, Health and Safety (“EHS”) guidelines; engagement with local communities in accordance with local requirements and IFC Performance Standards; assurance of fair, safe and healthy working conditions during construction and operation phase; pollution prevention including management of wastes (particularly biomedical and hazardous waste), emissions and effluents; and life and fire safety (“L&FS”) management for all public use buildings in accordance with national and locally applicable L&FS requirements as well as IFC requirements as specified in the WBG EHS guidelines; resource efficiency (raw material, water and energy efficiency) and impacts of land acquisition where applicable.



As regards land acquisition for the project, the proposed expansion of Weigao’s blood purification consumable manufacturing capacities will be undertaken within the existing facility and thus no additional land is required. For the dialysis centers, the Company will lease or purchase land through willing buyer-seller transactions. No person or economic activity is expected to be displaced/or was previously displaced as a result of these transactions and therefore, Performance Standard (PS) 5 (Land Acquisition and Involuntary Resettlement) is not applicable.



Similarly, the type of risks and impacts envisaged in PS6 (Biodiversity Conservation and Sustainable Natural Resource Management), PS7 (Indigenous Peoples) and PS8 (Cultural Heritage) are not applicable.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.