Summary of Proposed Investment
Project Number
10043
Company Name
Société Médicale de Moyens et d'Équipement
Date SPI Disclosed
Apr 19, 2000
Country
Cote D'Ivoire
Industry
Health, Education and Life Sciences
Status
Completed
Sector
Hospitals and Clinics
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : May 26, 2000
Signed : Sep 13, 2000
Invested : Dec 18, 2000
Project Description
Summary Of Project Information (SPI)
RegionSub-Saharan Africa
Sector
Project No10043
Projected Board DateMay 19, 2000
Company NameAEF SIMMEQ
Technical Partner and/or Major Shareholders
The project is sponsored by SIMMEQ, a corporation with a share capital of US$781,250 equivalent, set up by twelve (12) private investors of which eight (8) are medical doctors to build, own and operate the clinic. The main shareholder of SIMMEQ and principal IFC contact is Dr. Zekpa Aristide who holds 37% of the company’s shares. Other shareholders include Dr. Dressen Alice with 20% of the shares. Dr. Zekpa and Dr. Dressen together control 57% of SIMMEQ. None of the other 10 shareholders own more than 11% of SIMMEQ.
Dr. Zekpa is an Ivorian doctor who qualified in medecine in Abidjan and did several specialization internships in Bordeaux, Paris and Marseille. He worked in public and private hospitals in Abidjan as an anaesthetist/intensive care specialist for over 20 years. Dr Zepka is a person of great energy and determination.
Project Cost Including proposed IFC investment
Total project cost is estimated at US$3.35 million equivalent. IFC has been asked to provide a Euro loan of US$1.1 million equivalent representing 33% of total project cost.
Location of project and Description of site
The project is located on a 6,975 square meter plot of land in zone 4, a neighborhood of southern Abidjan. The hospital is a four-floor building on a reinforced concrete frame. Each floor is 1,500 square meters giving a total floor area of 6,000 square meters.
Description of Company and Purpose of Project
The project involves the construction and operation of a 79 bed private hospital in Abidjan, the capital city of Côte d''ivoire.
The hospital, Polyclinique Les Graces (PLG), will contain most of the major specialties and offer comprehensive and integrated medical care under one roof. With its 79 beds, PLG will be the second-largest private hospital facility in Abidjan.
PLG will provide outpatient services and inpatient services. The hospital has 71 ordinary beds in one or two-bedded rooms, 4 intensive care beds and 4 observation beds. The main specialties being covered include obstetrics and gynecology, general surgery, general medicine, pediatrics with specialist neonatal care, orthopedic surgery, ear, nose and throat surgery, urology and nephrology, gastroenterology, cardiology and oncology.
Radiology will be contracted to a specialist company operating at the PLG premises. Laboratory work is to be contracted out to the Laboratoire Principal in the Plateau district of Abidjan.
More professional management is needed in the Abidjan private health care sector. There is a great need for more efficiency so that prices can be lowered and medical cover extended to more people at reasonable cost. Containing cost-escalation while enlarging access to quality care will impact very positively on the overall health system and set an important precedent. This will allow PLG to provide quality services to a larger share of a growing insured population.
PLG has learnt from past mistakes in the sector, addressed weaknesses and invested in high quality specialized services where it has determined having comparative advantages. The objective is to systematically research increased efficiency. The proposed investments in the establishment of PLG will contribute to elevate standards and achieve efficiency and productivity gains through rationalization of operations and the use of innovative technology for diagnostic and management, therefore presenting a very positive development impact for the entire health sector. PLG will contribute to setting the standard for future investment in the sector.
Through its involvement during project finalization and in making possible its implementation, IFC has and will bring a valuable contribution to achieve the development impact presented above.
First, IFC will provide PLG access to long-term financing otherwise unavailable to the Ivorian private health care sector. Many creditors continue to consider the health sector as being characterized by high risk and low profitability, mainly because of its specificity and the resultant lack of understanding of the industry. The presence of IFC in the financial plan of this project has provided comfort to BICICI, the local bank which is co-financing this venture. IFC support comes at a critical time.
IFC will also contribute to the establishment of a modern, efficiently run private clinic thereby helping PLG enhance market discipline and consolidate its competitive edge. Through the investment program, PLG will pursue the professionalization of its management up to international standards. Through its due diligence process, IFC has made an important contribution to finalize the management arrangements for the Hospital.
As IFC support to PLG proves to be successful, IFC will have also contributed to establishing a new environment for the private health sector activities in Côte d''Ivoire. This will constitute an important demonstration effect regarding the practicability, profitability, and developmental value of investments in private health care.
Finally, the project is an additional example of IFC’s global strategy to target the human infrastructure (health, education, services) sectors.
The project fits with the World Bank Group strategy to improve healthcare services in Côte d''Ivoire as part of the Group''s overall plan to enhance human development and social services. It is consistent with IFC''s policy to support private sector participation in the healthcare sector.
Environmental Category and Issues
This is a category B project according to IFC''s environmental and social review procedure. Environmental, health and safety issues include: site location, power and water supply, waste management, handling and storing of chemical and pharmaceutical products, CFC-free equipment, fire protection, work place health and safety issues including exposure to X rays radiations."
The Simmeq clinic is located in a residential area of Abidjan. All medical product will be carefully stored in rooms with restricted and controlled access. Biomedical and hazardous waste is to be incinerated on site as there is no adequate waste treatment facilities in Abidjan while radiographic films will be collected and recycled through a specialized Europe-based NGO. Liquid effluents are to be treated via septic tanks.
Health and safety issues, including XR protection and regular training of employees is to be addressed in a safety plan.
Based on its review of available information regarding potential environmental impacts and the measures described above, IFC concludes that the proposed project will be in compliance with World Bank Group and IFC policies and with World Bank Group environmental, health and safety guidelines in force at the time of appraisal.
IFC will monitor ongoing compliance during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.
Local release of the ERS will be announced in French in the local newspaper, the Fraternité Matin.
The is from the InfoShop.
Host country location of environmental documentsAt the entrance of
Polyclinique Les Graces
Rue Marcony
ilot 4 et 5, Bietry Zone 4 C
Abidjan
Côte d''Ivoire
Date SPI sent to InfoShop April 19, 2000
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
Related ESRS/ERS
